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NVR's Q1 Earnings & Revenues Beat on Higher Prices, Shares Rise

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NVR, Inc. (NVR - Free Report) shares jumped 1.4% during the trading session on Apr 26, following its first-quarter 2022 earnings release.

This homebuilding and mortgage banking company’s first-quarter 2022 earnings and revenues beat the respective the Zacks Consensus Estimate and increased year over year. Higher average price of settlements in the quarter and lower lumber prices led to the upside.

Inside the numbers

The company reported earnings of $116.56 per share, which topped the consensus mark of $100.47 by 16%. The reported figure increased 84% from the prior-year figure of $76.93 per share.

Total revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.38 billion for the reported quarter, reflecting growth of 17% on a year-over-year basis.

NVR, Inc. Price, Consensus and EPS Surprise

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 $2.31 billion, up 18% from the year-ago level. The metric also topped the consensus estimate of $2.28 billion by 1.5%. Settlements in the quarter were up 3% year over year to 5,214 units. The average selling price or ASP was $442,900, reflecting an increase of 14% year over year.

Gross margin improved 880 basis points to 28.5%, buoyed by higher ASP and lower lumber prices.

New orders were down 6% from the prior year to 5,927 units. The average sales price of new orders rose 13% from the prior-year quarter to $465,700. The cancellation rate was 10% for the quarter, in line with the year-ago period. Average active communities totaled 404, down from 445 reported for first-quarter 2021.

Quarter-end backlog on a unit basis increased 5% from the prior-year figure of 13,443 and 20% on a dollar basis to $6.23 billion.

Mortgage Banking: Mortgage banking fees decreased 11% year over year to $69.2 million. Mortgage closed loan production totaled $1.48 billion, up 5% year over year. The capture rate was 86% for the first quarter, down from 89% a year ago.


At first-quarter 2022-end, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $2.14 billion and $19.2 million compared with $2.55 billion and $28.4 million, respectively, at 2021-end.

Zacks Rank

NVR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Few Recent Construction Releases

D.R. Horton, Inc.’s (DHI - Free Report) second-quarter fiscal 2022 earnings and revenues beat the respective Zacks Consensus Estimate as well as improved on a year-over-year basis.

DHI increased its revenue guidance for the full year, depicting DHI’s industry-leading market share, broad geographic footprint and diverse product offerings across multiple brands.

UFP Industries, Inc.’s (UFPI - Free Report) first-quarter 2022 earnings and net sales beat the Zacks Consensus Estimate as well as improved impressively on a year-over-year basis.

With this, UFPI’s earnings and sales surpassed the consensus mark in all the trailing five quarters. The uptrend was mainly driven by the diversity of markets and an improved pricing model.

Watsco, Inc. (WSO - Free Report) reported stellar results for first-quarter 2022. The company’s earnings and sales topped their respective Zacks Consensus Estimate as well as increased strongly on a year-over-year basis.

WSO is benefiting from regular investments in customer-focused technologies and the expansion of its branch network. Also, continued investment in technologies designed to revolutionize customer experience added to the positives.

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