Hovnanian Enterprises, Inc. has reported its fiscal 2024 second quarter results, showcasing impressive growth and improved performance. Let's dive into the specific metrics that have changed since the last period.
Total revenues for the second quarter of fiscal 2024 were $708.4 million, a slight increase from $703.7 million in the same quarter of the prior year. Sale of homes revenues also saw an uptick, reaching $686.9 million compared to $670.7 million in the previous year's second quarter.
The homebuilding gross margin percentage, after cost of sales interest expense and land charges, stood at 19.5% for the three months ended April 30, 2024, up from 17.8% during the second quarter a year ago. Likewise, the homebuilding gross margin percentage before cost of sales interest expense and land charges increased to 22.6% from 20.9% in the previous year's second quarter.
Income before income taxes for the second quarter of fiscal 2024 surged by 50.4% to $69.4 million compared with $46.1 million in the second quarter of the prior fiscal year. Net income also saw a substantial increase, rising by 48.9% to $50.8 million for the three months ended April 30, 2024, compared with $34.1 million in the same period of the previous fiscal year.
The company's EBITDA increased to $101.9 million for the second quarter of fiscal 2024 compared with $86.6 million for the second quarter of the prior year.
Consolidated contracts in the second quarter of fiscal 2024 increased to 1,512 homes compared with 1,477 homes in the same quarter last year. Additionally, consolidated contracts per community increased 6.9% year-over-year to 13.9 in the second quarter of fiscal 2024 compared with 13.0 contracts per community for the second quarter of fiscal 2023.
The press release also highlighted liquidity and inventory as of April 30, 2024, with total liquidity at $310.7 million, well above the targeted range of $170 million to $245 million. Additionally, the company saw a significant increase in total controlled consolidated lots, reaching 36,841 lots compared to 28,657 lots at the end of the second quarter of the previous year.
Furthermore, Hovnanian Enterprises provided financial guidance for the third quarter of fiscal 2024 and the full fiscal year, expecting total revenues to be between $675 million and $775 million for the third quarter and between $2.75 billion and $3.00 billion for the full fiscal year.
Today the company's shares have moved -15.4% to a price of $142.99. Check out the company's full 8-K submission here.
