Hovnanian posts 2Q loss amid 'choppy' sales

NEW YORK (AP) -- Homebuilder Hovnanian said Wednesday it took a loss in its fiscal second quarter because sales in April were "choppy."

Thanks to a national ad campaign, Hovnanian said March was its strongest month in almost six years. However it said sales in April fell short of last year's pace, and that trend continued in May.

Shares of Hovnanian lost 5 cents to $4.53 in morning trading.

The company said it lost $7.9 million, or 5 cents per share, over the three months that ended April 30. Hovnanian reported net income of $1.3 million, or a penny per share, one year ago. Its revenue rose 6 percent, to $449.9 million from $423 million.

FactSet says analysts expected a profit of 3 cents per share and $481.9 million in revenue.

The Red Bank, New Jersey, company said its backlog grew and the number and value of the contracts it signed increased compared to the second quarter of fiscal 2013. However deliveries fell 6.5 percent to 1,331 homes.

Hovnanian Enterprises Inc. said it signed 728 net contracts in March. That was the highest number in any month since April 2008.

Looking ahead, the homebuilder expects to earn a profit in the second half of the year and report a profit for the year as a whole, with continued revenue growth.