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When Will Hovnanian Enterprises Inc (NYSE:HOV) Turn A Profit?

Hovnanian Enterprises Inc’s (NYSE:HOV): Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. With the latest financial year loss of -US$332.19m and a trailing-twelve month of -US$366.00m, the US$245.93m market-cap amplifies its loss by moving further away from its breakeven target. The most pressing concern for investors is HOV’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for HOV.

View out our latest analysis for Hovnanian Enterprises

According to the industry analysts covering HOV, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . HOV is therefore projected to breakeven around a few months from now. How fast will HOV have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow 155.16% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NYSE:HOV Past Future Earnings June 27th 18
NYSE:HOV Past Future Earnings June 27th 18

Underlying developments driving HOV’s growth isn’t the focus of this broad overview, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

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Before I wrap up, there’s one issue worth mentioning. HOV currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of HOV which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at HOV, take a look at HOV’s company page on Simply Wall St. I’ve also compiled a list of important factors you should further examine:

  1. Historical Track Record: What has HOV’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Hovnanian Enterprises’s board and the CEO’s back ground.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.