Homebuilder Hovnanian Enterprises Q3 revenue rises 10.8% on strong home sales growth

Hovnanian Enterprises reported a 10.8% increase in Q3 revenue, reaching $800.6 million, although net income fell to $16.6 million from $72.9 million a year prior. The company anticipates Q4 revenue between $750 million and $850 million, with adjusted homebuilding gross margins projected at 15%-16.5%. Despite a rise in total contracts, gross margin percentage declined to 11.7% due to increased land charges. Analysts maintain a 'hold' rating, with a 12-month price target of $120.00, reflecting a 24.1% decrease from the recent closing price.