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NVR Q1 Earnings & Homebuilding Revenues Beat, Orders Up
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NVR, Inc. (NVR - Free Report) reported impressive first-quarter 2024 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was backed by improved demand trends, which resulted in higher order volumes.
Shares of this leading homebuilder inched up 0.4% during the trading session on Apr 23, 2024.
Inside the Numbers
The company reported earnings of $116.41 per share, which topped the consensus mark of $106.03 by 9.8%. The reported figure increased 17% from the prior-year quarter’s figure of $99.89 per share.
Total revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.33 billion in the reported quarter, up 7% on a year-over-year basis.
Homebuilding: Revenues in the segment totaled $2.29 billion, up 7% from the year-ago quarter. The metric topped the consensus estimate of $2.15 billion by 6.1%. Settlements in the quarter were up 10% year over year to 5,089 units. Our model predicted settlements to increase 2.3% year over year to 4,747 units. The average selling price, or ASP, was $449,200, down 2% year over year. Our estimate for the metric was $452,400.
Gross margin contracted 10 basis points year over year to 24.5%. Our estimate for the metric was 24.3%.
New orders, net of cancellations, increased 3% from the prior-year quarter’s levels to 6,049 units. The average sales price of new orders increased 3% from the prior-year quarter’s figure to $454,300. Our model predicted the average sales price of new orders to increase 3.3% year over year to $455,800. The cancelation rate was 13% for the quarter, down from 14% a year ago.
On a unit basis, backlog at the end of Mar 31, 2024, improved 7% from the prior-year quarter’s figure to 11,189 homes and rose 9% on a dollar basis to $5.22 billion.
Average active communities were 427 during the quarter, up from 413 reported a year ago.
Mortgage Banking: Mortgage banking fees inched up 0.7% year over year to $47.3 million. Mortgage closed loan production totaled $1.38 billion, up 11% year over year. The capture rate was 86% in the first quarter, up from 83% a year ago.
Financials
As of Mar 31, 2024, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $2.84 billion and $27.8 million compared with $3.13 billion and $36.4 million, respectively, at 2023-end.
During the first quarter, NVR repurchased 66,858 shares for $496.9 million. At March-end, the company had 3,167,625 shares outstanding.
D.R. Horton, Inc. (DHI - Free Report) reported second-quarter fiscal 2024 (ended Mar 31, 2024) results, with earnings and revenues surpassing Zacks Consensus Estimate.
On a year-over-year basis, the top and the bottom line increased. The upside was backed by the supply of new and existing homes as affordable price points remain limited and robust housing demand is supported by favorable demographics amid elevated inflation and mortgage/interest rates.
KB Home (KBH - Free Report) reported better-than-expected results in first-quarter fiscal 2024 (ended Feb 29, 2024). Earnings and revenues beat the Zacks Consensus Estimate and rose on a year-over-year basis.
Looking forward to the second quarter and full-year 2024, KBH foresees enhanced conditions in the housing market and ongoing positive trends in the supply chain. Leveraging the advantages of its Built to Order model, which provides buyers with choices, flexibility and affordability, the company is confident in its ability to navigate potential fluctuations in housing market conditions effectively.
PulteGroup Inc. (PHM - Free Report) reported stellar results in first-quarter 2024, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
Also, both metrics increased year over year on favorable demand conditions and its balanced operating model, which allows the company to more effectively meet the individual needs of first-time, move-up and active-adult consumers.
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NVR Q1 Earnings & Homebuilding Revenues Beat, Orders Up
NVR, Inc. (NVR - Free Report) reported impressive first-quarter 2024 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was backed by improved demand trends, which resulted in higher order volumes.
Shares of this leading homebuilder inched up 0.4% during the trading session on Apr 23, 2024.
Inside the Numbers
The company reported earnings of $116.41 per share, which topped the consensus mark of $106.03 by 9.8%. The reported figure increased 17% from the prior-year quarter’s figure of $99.89 per share.
Total revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.33 billion in the reported quarter, up 7% on a year-over-year basis.
NVR, Inc. Price, Consensus and EPS Surprise
NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. Quote
Segment Details
Homebuilding: Revenues in the segment totaled $2.29 billion, up 7% from the year-ago quarter. The metric topped the consensus estimate of $2.15 billion by 6.1%. Settlements in the quarter were up 10% year over year to 5,089 units. Our model predicted settlements to increase 2.3% year over year to 4,747 units. The average selling price, or ASP, was $449,200, down 2% year over year. Our estimate for the metric was $452,400.
Gross margin contracted 10 basis points year over year to 24.5%. Our estimate for the metric was 24.3%.
New orders, net of cancellations, increased 3% from the prior-year quarter’s levels to 6,049 units. The average sales price of new orders increased 3% from the prior-year quarter’s figure to $454,300. Our model predicted the average sales price of new orders to increase 3.3% year over year to $455,800. The cancelation rate was 13% for the quarter, down from 14% a year ago.
On a unit basis, backlog at the end of Mar 31, 2024, improved 7% from the prior-year quarter’s figure to 11,189 homes and rose 9% on a dollar basis to $5.22 billion.
Average active communities were 427 during the quarter, up from 413 reported a year ago.
Mortgage Banking: Mortgage banking fees inched up 0.7% year over year to $47.3 million. Mortgage closed loan production totaled $1.38 billion, up 11% year over year. The capture rate was 86% in the first quarter, up from 83% a year ago.
Financials
As of Mar 31, 2024, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $2.84 billion and $27.8 million compared with $3.13 billion and $36.4 million, respectively, at 2023-end.
During the first quarter, NVR repurchased 66,858 shares for $496.9 million. At March-end, the company had 3,167,625 shares outstanding.
Zacks Rank
NVR currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
D.R. Horton, Inc. (DHI - Free Report) reported second-quarter fiscal 2024 (ended Mar 31, 2024) results, with earnings and revenues surpassing Zacks Consensus Estimate.
On a year-over-year basis, the top and the bottom line increased. The upside was backed by the supply of new and existing homes as affordable price points remain limited and robust housing demand is supported by favorable demographics amid elevated inflation and mortgage/interest rates.
KB Home (KBH - Free Report) reported better-than-expected results in first-quarter fiscal 2024 (ended Feb 29, 2024). Earnings and revenues beat the Zacks Consensus Estimate and rose on a year-over-year basis.
Looking forward to the second quarter and full-year 2024, KBH foresees enhanced conditions in the housing market and ongoing positive trends in the supply chain. Leveraging the advantages of its Built to Order model, which provides buyers with choices, flexibility and affordability, the company is confident in its ability to navigate potential fluctuations in housing market conditions effectively.
PulteGroup Inc. (PHM - Free Report) reported stellar results in first-quarter 2024, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
Also, both metrics increased year over year on favorable demand conditions and its balanced operating model, which allows the company to more effectively meet the individual needs of first-time, move-up and active-adult consumers.