Hovnanian Enterprises Inc shares were higher 2% in recent pre-market trade after the company reported fiscal Q4 earnings of $0.14 per diluted share, down from $0.16 a year ago but in line with the average estimate from analysts polled by Capital IQ.
The builder of residential homes said revenue in the quarter ended Oct. 31 increased to $805.1 million from $693.2 million but fell far short of the $847.2 million consensus estimate. CEO Ara Hovnanian said 2016 “was a very challenging year.”
“The debt markets remained closed to companies with our credit ratings and we needed to raise funds to pay off $260 million of maturing public debt. This led to our decision to enhance our liquidity by increasing our use of land bank financings and joint ventures, as well as exiting four underperforming markets,” Hovnanian said.