We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NVR, Inc (NVR) Beats on Q1 Earnings, Homebuilding Solid
Read MoreHide Full Article
NVR, Inc. (NVR - Free Report) , one of the nation’s largest homebuilding and mortgage-banking companies, reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate of $19.74 by 27.3%. The reported figure also rose 59% from the year-ago profit level of $15.79 per share.
Total revenue (Homebuilding & Mortgage Banking fees) totaled $1.28 billion in the quarter and increased 12% year over year, driven by higher housing revenues and mortgage-banking fees.
Segment Details
Homebuilding: In the reported quarter, homebuilding revenues rose 11% year over year to $1.25 billion.
New orders climbed 7% to 4,424 homes, driven by demand growth in the housing markets served by NVR. Settlements increased 8% year over year to 3,256 units. Average settlement price was $392,600, up 5% from a year ago.
At the end of the reported quarter, average community count was 486, up 1.8% year over year.
The company’s backlog totaled 8,052 homes (as of Mar 31, 2017), up 9% year over year. Potential housing revenues from backlog increased 13% to $3.19 billion.
Margins
Gross profit margin expanded 30 basis points (bps) to 17.8%.
As a percentage of homebuilding revenues, selling, general and administrative expenses (SG&A) were 8%, down 70 bps year over year.
Homebuilding operating margin increased 100 bps year over year to 9.8%.
Mortgage Banking: In the quarter, Mortgage banking fees grew 31.1% year over year to $29.5 million. Mortgage closed loan production in the quarter totaled $843.3 million, reflecting an increase of 12% year over year.
Financials
NVR’s cash and cash equivalents totaled $492.5 million as of Mar 31, 2017, compared with $395.4 million as of Dec 31, 2016.
Masco Corporation (MAS - Free Report) is slated to release its quarterly results on Apr 25. The Zacks Consensus Estimate for earnings is pegged at 36 cents, an increase of 11.3% year over year.
PulteGroup, Inc. (PHM - Free Report) is slated to release its quarterly results on Apr 25. The Zacks Consensus Estimate for earnings is 28 cents, an increase of 16.7% on a year-over-year basis.
Louisiana-Pacific Corp. (LPX - Free Report) is scheduled to release its quarterly numbers on May 5. The Zacks Consensus Estimate for earnings is pegged at 29 cents, an increase of 319.1% on a year-over-year basis.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
NVR, Inc (NVR) Beats on Q1 Earnings, Homebuilding Solid
NVR, Inc. (NVR - Free Report) , one of the nation’s largest homebuilding and mortgage-banking companies, reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate of $19.74 by 27.3%. The reported figure also rose 59% from the year-ago profit level of $15.79 per share.
Total revenue (Homebuilding & Mortgage Banking fees) totaled $1.28 billion in the quarter and increased 12% year over year, driven by higher housing revenues and mortgage-banking fees.
Segment Details
Homebuilding: In the reported quarter, homebuilding revenues rose 11% year over year to $1.25 billion.
New orders climbed 7% to 4,424 homes, driven by demand growth in the housing markets served by NVR. Settlements increased 8% year over year to 3,256 units. Average settlement price was $392,600, up 5% from a year ago.
At the end of the reported quarter, average community count was 486, up 1.8% year over year.
The company’s backlog totaled 8,052 homes (as of Mar 31, 2017), up 9% year over year. Potential housing revenues from backlog increased 13% to $3.19 billion.
Margins
Gross profit margin expanded 30 basis points (bps) to 17.8%.
As a percentage of homebuilding revenues, selling, general and administrative expenses (SG&A) were 8%, down 70 bps year over year.
Homebuilding operating margin increased 100 bps year over year to 9.8%.
Mortgage Banking: In the quarter, Mortgage banking fees grew 31.1% year over year to $29.5 million. Mortgage closed loan production in the quarter totaled $843.3 million, reflecting an increase of 12% year over year.
Financials
NVR’s cash and cash equivalents totaled $492.5 million as of Mar 31, 2017, compared with $395.4 million as of Dec 31, 2016.
NVR, Inc. Price, Consensus and EPS Surprise
NVR, Inc. Price, Consensus and EPS Surprise | NVR, Inc. Quote
Zacks Rank
NVR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (strong Buy) stocks here.
Upcoming Releases in the Construction Sector
Masco Corporation (MAS - Free Report) is slated to release its quarterly results on Apr 25. The Zacks Consensus Estimate for earnings is pegged at 36 cents, an increase of 11.3% year over year.
PulteGroup, Inc. (PHM - Free Report) is slated to release its quarterly results on Apr 25. The Zacks Consensus Estimate for earnings is 28 cents, an increase of 16.7% on a year-over-year basis.
Louisiana-Pacific Corp. (LPX - Free Report) is scheduled to release its quarterly numbers on May 5. The Zacks Consensus Estimate for earnings is pegged at 29 cents, an increase of 319.1% on a year-over-year basis.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>