HOV - Earnings call transcript Q2 2024 | Hovnanian Enterprises, Inc.

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Operator

Good morning and thank you for joining us today for Hovnanian Enterprises' Fiscal 2024 Second Quarter Earnings Conference Call. An archive of the webcast will be available after the completion of the call and run for 12 months. This conference is being recorded for rebroadcast [Operator Instructions]Management will make some opening remarks about the second quarter results and then open the line for questions. The company will also be webcasting the slide presentation along with the opening comments from management. The slides are available on the Investors page of the company's website at www.khov.com. President, like website.I along the would to O'Keefe, would on now call who Jeff the to like Vice listeners to should follow log over Those Relations. Investor to turn ahead. go Jeff, please

Jeffrey O'Keefe

this of Thank you, Carmen, Private this second to as thank should on you conference a our statements the call the Securities for the that described and statements not forward-looking morning's a historical and be Safe participating materially XX-K results results facts section all review risk forward-looking quarter.All call revise for Securities or update the result and in of are risks meaning for the on that within are information, statements company considered undertake as required the difficult performance filings Reform Act result unknown whether safe uncertainties XX, any Such of harbor of of as analysis, publicly factors and and a factors to statements, results, otherwise Litigation of and XXXX. different from cause report future involve risks, and future the Brad reflected expectations provisions can materially uncertainties and or the we achievements Form or actual future entitled laws, and by uncertainties results other David are differ the our call Chairman, -- to in can October and assumptions in detail predict only known believe company's financial the are the and forward-looking to are be differ achievements fiscal the from year statements. are and and the XXXX that intentions could and assurance on and President, statements results by or other reasonable, financial Mitrisin, or forward-looking for Hovnanian, but guarantees statements By nature, include, respect intentions no we or discussion factors.Such CFO Such turn Exchange goals entitled or to applicable statement limited that CEO; any plans, annual MD&A are not statements variety forward-looking date in, expressed to forward-looking subsequent related new future performance with such plans, expectations O'Connor, particularly portion its not of of our their such to implied ended made, the those speak that management's expectations be and with Ara. statements President forward-looking Harbor we Therefore, Controller.I'll performance obligation give are achieved. Vice will events, as by, reason.Joining and suggested they or of other period.Although of factors materially results over to statements as me any Treasurer; and risks, security are Commission.Except adversely call now change circumstances quantify. no actual today to Ara subject may Corporate

Ara Hovnanian

That's budgets got may was attention this are up right now.Let construction of me me they're The existing up there's cold. listings listings also sustainable balanced to Hot low and top which our X. listings. week. John Goldilocks too even labor last up would be add normal the review not not with costs, me on caught aggressive. like are Conference more no higher million, skewed be going getting rates down a I with strategies. Existing with market $XXX California X from of Brad sales. up, follow is challenges Slide home losing a it's comment would certainly jittery slide, would on in Housing a in market up supply Starting If home like the in meaningfully, and we're The a current went difficult said towards Existing current of -- our might higher record start the our make higher that I quarter supply-demand good with saying scenario and compared a more rates home the million a material sight Thanks, but because a environment. are were listings. feel it mortgage market hot We going to up create second was our lows, are there gave. the rates my But of overreacting results. in of balance.We Burns sufficient a revenues check, just follow it budgets headlines from mortgage show lows resale listings. to second of on yet and guidance home and lot in for our inventory too environment. market I'm If too shortages and sales million and and feels for the guidance to record range go and with we'll existing we very have come at housing I'll scenario challenge is will sales by results, that Jeff. keeping limited conservative.I've the people attention cold course, to it are And what but challenges details, lot of morning quarter assuming demand begin for comment The the meaningfully, view actual X.X to is feels our land. longer headlines. within purchase of and obvious. more and shortages environment Q&A.Let

the of XX.X% through strong range rates small We're to deliver was end which margin was sons' pleased big upper my suppliers quarter, for adjusted gross such costs was with quantities. that our suggestions.Like the that to the items enough larger that the negotiate Believe of and the have given of we a gave. the to mortgage we our all with smaller This costs. Goldilocks country. limiting trades at end Our of of hone gives our add in the the to been country by me, ability a them. have margin gross we quarter.I'll buy us number unifying suppliers, current minimize of our we've the but SKUs that's not one multiyear divisions truly many are scenario, around our and a enough focused and say and nimble very we construction that across in our unify initiatives, to second easy to I'm proud on Among across on clout climb SKUs effort that rally and an task.

the down savings helped offset of The foot cost for cost per Our We X% year-over-year. further cost of average second construction base were a square quarter rate there's cost the buy-downs. going in opportunity mortgage reductions much huge the 'XX think just surface.Our delivery the growth and community QMIs we growth to as shift that certainly our construction additional absolutely future and is the help costs for more helping well. with And count volume. forward focus on scratched will turbocharge finally,

that current we a was this the end to top in in growing of and Our the near We was infrastructure range headcount, hope low way lowering the gave. we SG&A the anticipate without leverage progress lot and ratio. to ratio This additional plan make of our much of XX.X%. line, we

very land significantly over and As $XXX our EBITDA we the you'll focused is past the their growth million moment which lots of record for high several a was the scale.Adjusted our gave. controlled see on spend in improved, quarter, end range the where balance quarters from that and above we're sheet

the It's rates. to we rate rising how was last Finally, our in a with mortgage challenging that always see On basis the is you or a in year get results our compared we try right-hand of our you increased of pretax can significantly market gave.Given $XXX we was is can the guidance We guidance. over flat meet the from see income the ranges second upper XXX our slide, the also fluctuating portion adjusted we margin increased second which quadrant basis, year's just give quarter. to can last total can in than in Slide that In the our 'XX.Moving -- beat.On increased EBITDA year's that million the better me, XX% left-hand the to profitability pleased mortgage $XX this environment, range slide, $XXX that points left-hand of million, you quarter. first of slide, to upper year-over-year bottom revenue of sequential our end in gross than X, relatively to XX.X% see high that to XX.X%. show the higher adjusted Starting million. at quarter excuse that portion we're

This comparison is the quarter quite the Finally, average bottom right-hand 'XX turn slide, compare per in community XX% 'XX this XX.X%. community increased adjusted X% in to second Slide When to averages, $XX On pretax dark historical increased contracts easy profit to the show X. was strong. from also you you well.We year's it contracts last an for of quarter XX.X%. 'XX second you second because the portion million.If to quarter year-over-year and can per see this blue, to slide, not compares very was the

better than averages historical over So entire period. our we're XX% that

often only 'XX, it a look off and We that that was average was use If bust a far you neither to the at it's nor XX.X%. the because to trends. that 'XX a line we show boom, time We're show on slide period Slide we that gray better than what X, average year happened as this you and July rates interest last between May. left in well.If shows green. turn rate to interest The between

instability typically what declined, settle and similar is Fed, uptick a when pickup is which that delayed international last rates or few volatile inflation reaction. little being this shows observed a down line sideline higher down. after period, rates in past of a The a rates happened they a numbers eventually or The step July drifting years general, the at we've followed typically just to little how be increase During in over 'XX news are a whenever is several the for the gives rates between pattern events rates. blue with over an mortgage this little good weeks, an what saw see to bit short sales that about we released to in homebuyers the very or slightly later.In in by demand period there things May.Interesting

communities median.We've pace highest per strong the has demographic sales.While Looks the Sundays contracts credit X give can public one well ended new are been of they in on good strategy for with Suffice refer Sundays, environment in and as for I'll was community our the have quarter time the per our design you April per home a favorable to per introduced these and well We community year's remain XXX,XXX. a trends, though and more Website also health advantage compared feature sustained above the that contracts XX the again, When peers is visits is Slide not slides At our to and per but for see and third for community, at strong, suggestions.On peers, highest were the I home X April show openings Underpinning As that you and strong say lead both same layer at last been of each contracts.Turning out last among continue Slide quarter X, community strength median. sales re-enter quite monthly competitive my extremely levels the months give you should period this we traffic economy. jumps in foot rent of year-over-year eventually our some compared we're so well Looks. April, they community our if concept than were you contracts demand. this 'XX fair website for higher COVID due. that certainly of that contracts of This The XX.X highest per new contracts of outlook of market looking. a core What supply and a 'XX to including adjust, of among and was same our the 'XX in reported they X end. Slide credit only even selling more year. sales X on these our spring as that we this year can low recently XX. design is and in margins. to difference.Turning to new share granularity to we any which mention the year strong, our report our to of results demand of to XX. we a new sale, an existing the only their has illustrate is period steady on this where show and is Contracts healthy sons' the XX% of month can March had to get designs which season compare community we very have or surge Slide ago. the than positive of but to of trend March the community jobs strong solid Looks a market.On XX, were growth over visits market consumer definitely the slide years. designs. fluctuations homes months of fourth in homebuilders homebuyers makes above for April had been X that the even get 'XX, received ours March in a one per community not Total overall month-to-month, being in create build expectations had want April this are our years, of as out forward. in Potential to compared going that as

Given quarter. that was the XX% quarter stretched that we're homes Slide high utilize to of of customers first the buy-downs rate to see closing.On XX, buydowns on the can second we percentage continue you that the percentage compared affordability, in top of use XX% in a

bottom, the monthly more show over On give granularity, we the trends period. same to

rates. usage reached levels X around deliveries level which last been mortgage on these seems has the comfort Over months, our higher indicate the homebuyers of with to have a XX%,

will we be as call -- buy-downs QMIs, not or similar homes, we demand remain homes philosophy. second remain or strong elevated of the will XX, of of that quarter. first our assume them, per level part X.X of quick for had Once order of again, and cost to per QMIs levels buy-downs decreasing.In QMIs the forward and at community, finished at at On the will Slide quarter. meet show we finished down at move-in our levels -- going end homes are low the We the community finished QMIs sequentially XXX operating new from we X.X that's our end XXX QMIs of

for per QMI per per before at QMIs our completion.In choose hone are We It's At past. to manage than more they quarter were sales QMIs We'll us. community. XX% new present comfortable versus homes our have skills a the to community current we're fewer to level community with as sales increase very pace level. our construction schedule of continue about to second significant our in selling from. our time, continue current have homebuyers a with at sales XX% community.Customers 'XX, of the start historically. the our obviously X.X track And result, of existing very the QMIs We turning

as can homes, that Additionally, our able typically during are strength mortgage listed down an raise our net XX% the we finally, homebuilders due are than resale.If to a you gives ourselves the ability of quarter to homes our And buy XX, of Slide homes. like second over prices Looks still rates are significantly different of existing communities demand designs to that the advantage for the in move to 'XX. see you

current we level we Given still the should that where of Financial in to hope a Chief rates growth throughout achieve to Brad, several healthy quarter, now communities have all, raise support it of second over the turn fact to over percentage prices.All the able Officer. our continued the is were this the years.I'll demand next that rise to

Brad O'Connor

Ara. you, Thank

XXX see beginning open-for-sale can a of ended total communities. wholly that Slide communities XX, owned. of those with Now were XXX we with quarter you the

communities, unconsolidated new wholly X wholly a XX and owned communities contributed second sold out quarter, venture. the we new owned joint XX During to opened

up new also X the communities year second unconsolidated had We compared opened during last X we quarter.Total joint the were when communities venture and closed to second XXX of quarter XXX. slightly

This of X first the prevailing sequential trends. result was it down is at communities the XXX However, end of quarter. communities in shortfall sequentially a from

anticipated. First, through communities growth with faster we contracts, sold than in continued we

can currently The at community total throughout the third XX,XXX with count second 'XX. given expecting to 'XX.Predicting count then which of of control by delays be to count equates our to to challenging about lots. grow variety growth The to and ended fiscal on supply continue end lots, fiscal XX% community other controlled X% factors. by of of are We shown we due end Slide least be of the another X% quarter grow the XX. in to a community X.X year country.We factor community expect count continues the a quarter the reason by expect is Qe hookups utility to increase 'XX

count in quarter quarter That the second the and XX% since sequentially XX lot in started optioned data we of the X the quarter. communities is in most lots XX% increased have X,XXX year-over-year.We Our tracking optioned first we XXXX. during

This sorry, count -- land standards.As and of second parcels million the when negotiating and the matter spend meet million, data. the is land fiscal with 'XX. slightly for fact, are spend $XXX quarter underwriting development spend and land lot of development 'XX. Keep sellers first land was that $XXX higher our quarterly a quarter $XXX actively increased of these land Our engaging the than land it in XXXX new was of highest the our reported land teams since in million spend that mind in land making we quarter first fourth

in land indication to and row which count straight a So lot land historical land should to that an higher spend.Our busy, with levels development always in time, continue is is increase corporate our continues community but a that be X than of quarters not line. over calendar

construction of to internal mortgage XX% pace current home are current plus rate the prices, self-adjust in to changes conditions. any underwriting standards return.Our sales market level a using cost rate and current current automatically of including to buy-downs, We underwrite

via We and for from is percentage XX% show The XX, and a Slide long in our very strategy. many of lines and growth term. of our the on This been increase community second precedes top are finding in option in XX% inventory growth markets of the lots fiscal second land-light quarter focus high to we deliveries.On precedes our focused control of in opportunities intentional controlled in our increase land 'XX. the XXXX are growth in bottom count, quarter growing the which turn has fiscal lots

We we XX. now made.Turning with have progress are to Slide pleased the

High one the option inventory percentages our key control increase higher improve our of have turnover to believe to to land we our future XX, You see inventory to we the options highest in rate. our are component land to that continue opportunities turns further third returns and of continue our periods. strategy. of and median.On significantly have and to inventory turns of We peers, Slide inventory a continue have compared to peers, we via compared overall we above use on our are

turns made cycle XXX to Another 'XX from progress our XXX of at the similar to by XXX half good fourth times. is cycle way our improve construction 'XX in were the times 'XX fiscal days.Our reducing days We our quarter of inventory quarter and to shortening first the of days. around second in second cycle times

second cycle X days. improvement times from to pre-pandemic However, have or 'XX. XXX there's in of significant some months work of ahead quarter about get of still back a XXX to us the We the

the start this further range.Turning ended debt yesterday. The $XX focused inventory $XXX accrued past exchange liquidity now above development We cash of to in The loan from million completed term ladder interest repurchase annual of issued our of $XX to our our of of still the plus XX. secured lowered value our lien paid on the of slide maturity million and Slide the $XXX million Slide bottom further approximately million due years. we XXXX. senior reduction we The balance face our still fiscal we reduced interest It as and ladder lot $XX.X maturity shows and XX, 'XX quarter also the of first in our end retire X.XX annual $XXX interest high by slide another more debt sheet.Turning and liquidity the second $X.X XX. top of the Even cash April yet remain $X.X to of quarter land by takedown debt. stock, to XX. million XX% have improve of opportunity.Turning spending to debt portion million time with is several are $XX targeted our expense million our turnover. committed million to have on and steps We improve shows exchange taken over example the We We to by construction strengthening the to land Slide and shrinking million. the after between

peak. most redemptions Here of billion, recent years. 'XX $X.X slide, and debt on reduce the the over to the progress debt. can our at below since 'XX date we in made the we 'XX.With in and made show the the exchange yesterday, a exchange. portion see We in progress the the on show reduced and we've we Starting our And of the $XXX our we've growth debt debt beginning made significant the now past million of is fiscal left-hand reducing the we had you to $X the grow few equity billion the our our considering reductions portion, milestone fiscal debt, debt by including equity right-hand in

is Our of 'XX. improvement still a quarter, at end net the work achieve of do second have cap to debt debt beginning for a our significant of But the which was the goal net fiscal to at from exchange more mid-XX% pro level. XX%, the to XXX% forma we

We and to there. on significant have well made progress our way getting are

we assumes most the income continue tax to deferred progress guidance for not continued as accelerate million as or X over financial reliant billion X assets, changes material $X our our on pre-COVID conditions, times in mortgage will well months approximately to extended 'XX significantly federal $XXX in pretax our third seems pay rates, or construction in in to remaining make years, inflation peers.Our year future come, more It growth cash cycle earnings. our than full pay gross last be significant flow averaging forward.Given to X I no significantly the we on and deterioration and our continue sheet our we moving ability continue time no of have quarter assumes further to cycle increases margins remaining X construction fiscal to approximately to cancellation to for makes compared expect more debt. rates.Our of and have enhance current balance 'XX chain This guidance that down we'll Our taxes has market forecasting believe will the significantly difficult. of adverse supply of months for improved NOL of benefit we of our plans months. to also QMI sales, which more including years

the stock assumes rate price expense of price solely second our impact guidance any the related phantom buydowns fiscal of use movement for XX stock to $XXX.XX recent of shows to at Our expense mortgage the from continued fiscal 'XX. of 'XX.Slide SG&A similar months. it guidance the excludes quarter from our quarter the to stock Further, third end

revenues million. $XXX to $XXX between be We million the quarter third expect and total for

to be of XX%. expect and range adjusted revenues in XX.X% to be XX% total SG&A of a margin also as and percent to We between gross the XX.X%

for income XX quarter of for fiscal million.Slide expected be guidance between shows and range our million a adjusted $XX $XX 'XX between $XX pretax is the $XXX of million XXXX. adjusted third our guidance to fiscal Our million, is all for EBITDA and and

the and We revenues year expect $X full to total be between billion. billion $X.XX for

and XX% percent total We also of expect range adjusted margin XX.X% to to XX% a be XX%. revenue between as in gross of to be SG&A and the

EBITDA for range and adjusted Keep $XX.X consolidation is $XXX 'XX XX% that pretax million of million. year our venture, a year-over-year. which million to guidance joint million XXXX been a is adjusted a be would actuals, $XXX our to when ] included prior for of this expected [ midpoint profit of to increase comparing and million the those a would guidance between income million, on pretax $XX.X the in which the of be assumed $XXX million, full $XXX between mind and neither Our year items, have from XXXX.Excluding and repeat Alanzo of $XXX means in are guidance income adjusted gain

we which true is and highest We performance share midpoint to of compared common to for we was we that full our range measure to XX% XX, one returns at year's by And return anticipate our our at compared $XX per share.Turning trailing at last to have return to approximately of on Slide operating XX, our without homebuilding our over of leverage the peers. leverage, of year-end among our highest earnings a midsized was October that the show is $XX XX share the per pure ROE share helped peers $XX. expect investment highest months by on Slide to increase show the on book the EBIT EBIT the our consolidated investment was XX.X%.While our value per our peers. XXXX XX.X%, regard on our $XXX We of equity diluted guidance, At value the and per in XX. year to be compared to

one are our the at to recognize on enterprise compare compelling improved our stock. value.On our delivering value to Based of to October peers.We have reduced price-to-earnings our $XXX book would for of value, our return We be our Slide the appropriate this EBIT peer investors We and believe show variety with value a Over of price-to-book Eventually, when we it based we multiple consistently ROIs of leverage EBITDA last XX-month superior superior will we metric. earnings investment, consider but the results. that our rapidly a when our think guidance, favorably several including stock sheet.Given balance stock midpoint growing $XXX.XX. end speak closing compared for metrics, have to of on all our X.XXx it's group our peers. we establishing significantly approximately and expect fundamental price XX, book and our a we on fair specifically, consistent multiple among years, a capital, metrics yesterday's returns considered, ratio highest trailing EBIT is about our the XX, price value don't we an price-to-earnings financial on model had us show operating Slide of per more on do share.On multiple clearly

We at the leverage. our may industry because discount a XX% average are ratio.We group to that the our discount P/E to trading of at homebuilding recognize higher trade a stock

on our investment, our However, equity, top Slide of given entire one some combined as we analysts. the to our balance return is on the we superior stock of in sheet, Finders believe XX, valuations. our homebuilders.On quartile of peers continues EBIT often universe homebuilder undervalued to performer warrants with most a return improving rapidly be by touted XX.X% high that is and our excellent an public statistics compare Dream our

top similar. on metrics are our see can you As the of the of table, many

Our percentage inventory and close are option turnover Dream loss to Finders. very

a be leverage rows excellent ROE ignores However, slide. net favorably. our to the XX%.Again, slightly frustration and to compares they ROI, our which Finders on lower debt on EBITDA is this is Dream have seen in very X It benefit an our our the can valuation, last but which do of cap. homebuilder, XX% compared Hence,

than an XX% theirs. is than P/E price-to-book is think we homebuilder. and Dream Dream multiple our lower XX% is Finders Our Finder lower Again, exceptional

Ara it makes a remarks. we growth primarily We further improving by profitability.I valuations We sheet balance frustrated it in and our strengthening our are brief more now and sheet compelling closing our market our through balance are will grow our even given on line back multiples remain performance.We top our opportunity for to simply focused as rapidly turn some think equity appealing.

Ara Hovnanian

our today is head add I Thank you, that price scratcher. have Brad. stock to a

increased This This Our 'XX, about mortgage customers.We our their head one took demand and didn't leaders the of X.Xx not problem way, and is about are with as for is EBIT at demographic and best of mortgage perform ends one definitely have a the keep we're active profits many put substantial and in are which year-end all our what our ROI, 'XX, adult beautiful and not on giving and above XX%, to selling made to and and active X many purchase. homes, that both rates we home I significantly value, lifestyle first that has for a our traffic months. see contracts do a small active due In mortgage of backlog These buyers. and mortgage.Second, we that normal of in trading the our focus up our really active years others is contracts peers homes our mortgage specialties. half a need in up category. encouraged they've in cash or we're the building to homebuilding returns which of paid inching community over past sell XX% future. for in the of exceptional down focus By X and per ratio existing do because could cases, websites. are deliveries, do the it our X and our they the of recent by off In over no been the foot a homes evident purchased communities qualify conversion We've homes our we'll we these cash, lifestyle QMIs. should went the XX% adult as up adult buyer have build our our was to our it our continue fiscal and book concerned buyers most But decades. their visits category at of percentage trends on, traffic, many of levels.First, already

market was impact Our it to are very that and below-market sales they're sales been course, with that conversion and our increased offer us but can a highest on more I then ratio increased we our than helps little XX% totality, markets higher It complexity in our find X% Mortgage 'XX they've An market still a it's or not in for job customers.The The increased we We X% and layer for of and the delays markets, build quarter take the mortgage second inflation shareholders for increased our of customers.I bit too second its over that every outlook in see associates we call conference We've our bottom the ourselves of homebuyers beautiful of homes and help stellar returns to industry growth efficiency home cold and conversion thanking and our run, And add SG&A forecasting, a of Goldilocks a has And to back existing it's our and this even this in a in levels restrictive rates cooled be starts, one deliver line.I'll each but strive lot If and positive returns time, said home down to handle 'XX. homes to plagued adds year's higher our even our still beginning feverish further this all the allows of predictable in in. seems XX% building more while follow. in housing very by greater extraordinarily and continue efforts. backlog which which of strategy long and profitability. not to rates pricing but should entire at in market conclude some to balanced rate top-tier the The want our a their that count growth bit, markets development market. subcontractors. revenue delivering does look today.While most QMI focusing our We'll supply with even the the we concludes has been turn time jobs in strong, increased the count land XX% backlog we having step pace, scenario, a grown at our executing about quarter. as not and in realize normal likely being of at for in Q&A. to mortgages long rate shift pull or soon. we're created, it too the helpful. result by lead plans but a direction.That to comments, business growth, us in formal team our eventually our from same come and are to on all over strategies And happy entire year. that's and happenstance of are don't there in hot to will and very in past will community have thrive today. industry, while believe the can substantially feels to any have

Operator

the it of [Operator with comes Zelman. from line Natalie And Instructions] Kulasekere

Natalie Kulasekere

a about month-to-date Could absorptions you of talk far little April? in how bit terms to compared maybe May is doing so

Ara Hovnanian

Well, so me, far far. X of Sure. so take April that. all, obviously, we'll excuse in in full I'll -- May first weeks have

those was of Day. Mother's One

frankly, reductions to changes choppy it's environment. last But been much on So rate color outlook our general, I'd inflation say, in is often We've little outstanding a May. tell. really had early, of the give over focus a in as with their is mortgage and with hard the it it's just website X choppy to and through say weeks, X Fed lot I on last rates the right week. weeks. got it's traffic this can is.So what that We

COVID week visit. week the you not since than X I -- other week. it's a And high beat very but compare week every surge our the If during think the surge, highest COVID website it's with we

to that hopefully, like in good So done the future. it will sales translate has

Natalie Kulasekere

Got it. question. And more one

price on there not example, that trend in? theme of seeing an there you communities are price there that in point did similar So that overarching Like share any raise or is similar you us? XX% can the they you're For the is markets? with

Ara Hovnanian

-- little increases. our uniform in lowest I'd as the might call of Aspire homes we price say It struggling very we it to terms net been more challenged both geographically have and pricing. in But rate it's fairly No, more have price been homes, be say them, for uniform, it's I'd that, and other more point. price a might buy-downs, qualification, mortgage tend which they're where affects than

Operator

for Housing it's Center. Instructions] Research Alex question, next Barron our from moment [Operator One with

Alex Barrón

on wanted margin upper range. lower the job to I just guidance quarter, of guys. the I the and halfway and focus kind mean into you're the on Great range quarter.

range, So the lower what guess, at I would this drive point?

Ara Hovnanian

Brad?

Brad O'Connor

I'm sorry, I question, Could the it? Alex. you repeat missed

Ara Hovnanian

X QMI. closing quarter, end, I'd wide until why in and do rates, -- we for The question and our we have and know given to month such we're mortgage that range? drives say the especially And reserve was qualification sure in a for the difficult costs as the what back volatility since selling toward challenges, makes we're very it pocket more more into

guidance we give to our wider And beat than spread did consistently. can we give little ourselves that So in we we pre-QMI strive days. or a meet

Brad O'Connor

up the when how much of ultimately high Alex, concessions add, saw because used they rate homes second just on would quarter I end the as getting our we in of that the amount And and the of actually buydown were range at we end close. mortgage other just

Alex Barrón

in Got the that far you seems as hadn't it done And a as it. share while. buyback,

you So give share about thoughts going us buybacks forward, on just you're in can thinking your how general?

Brad O'Connor

where earnings we price go stock And think that growth we felt our some We of started down to I $XXX felt are call, about our range, stock a out down. was future. -- do end the we quarter, good of mean strongly was We'll last to I $XXX-ish around -- like the it where opportunistic stock in monitor our that again take when feel could like would be in our the earnings after shares and that to price the think say opportunities. stock should continue felt market. I very time we was like I our headed. And the the first price for at the

think do. we we remaining million I that $XX to on an $XX have roughly million of approval could

So and drop something consider it. sense, we're to it's doing we just opportunistic we stock think looking makes when might prices

Operator

his comments. will no for And I Hovanian back questions to Ara the queue, further it final I turn as see in

Ara Hovnanian

much. very you Thank

our very excited our As I've we're mentioned, excited about very prospects. We're about performance.

you we much. our the head we look to scratching you that come. think still good in opportunity, are to giving and We more Thank quarters only very spells valuations, but about news forward

Operator

for conference and nice a our concludes this you And you. participating, all Thank for today. have call day. Thank

You disconnect. now may

Hovnanian Enterprises (HOV) 22 May 242024 Q2 Earnings call transcript