Hovnanian returns to profit in 2Q

Hovnanian Enterprises Inc. returned to a profit in its fiscal second quarter as the homebuilder recorded a large gain on debt extinguishment and charges declined. The company also saw home deliveries and backlog improve during the period. Ara Hovnanian, the company's chairman, president and CEO, said Wednesday that there are signs that the sector may be entering the early stages of recovery. The Red Bank, N.J., company's stock jumped 23 cents, or 13.5 percent, to $1.93 in morning trading. Over the past year, the shares have traded between 89 cents and $3.31. < SCRIPT language='JavaScript1.1' SRC="http://ad.doubleclick.net/adj/N6515.2664.AZCENTRAL.COM1/B6492291.2;abr=!ie;sz=160x600;click=http%3A//gannett.gcion.com/adlink%2F5111%2F334834%2F0%2F154%2FAdId%3D2712204%3BBnId%3D1%3Bitime%3D16553142%3Blink%3D;ord=16553142?"> < /SCRIPT>< NOSCRIPT>< A HREF="http://gannett.gcion.com/adlink/5111/334834/0/154/AdId=2712204;BnId=1;itime=16553142;nodecode=yes;link=http://ad.doubleclick.net/jump/N6515.2664.AZCENTRAL.COM1/B6492291.2;abr=!ie4;abr=!ie5;sz=160x600;ord=16553142?"> < IMG SRC="http://ad.doubleclick.net/ad/N6515.2664.AZCENTRAL.COM1/B6492291.2;abr=!ie4;abr=!ie5;sz=160x600;ord=16553142?" BORDER=0 WIDTH=160 HEIGHT=600 ALT="Advertisement"> < /NOSCRIPT> Hovnanian reported net income of $1.8 million, or 2 cents per share, for the three months ended April 30. That compares with a net loss of $72.7 million, or 69 cents per share, a year ago. Analysts polled by FactSet expected a loss of 30 cents per share. The company's pre-tax land-related charges totaled $3.2 million in the quarter compared with $16.9 million in the prior-year period. It also recorded a $27 million gain on debt extinguishment, while it incurred a $1.6 million loss on debt extinguishment a year earlier.

Click here to view this article from its source.