NVR, Inc (NVR) Beats On Q1 Earnings, Homebuilding Solid
Zacks Investment Research | Apr 20, 2017 09:16PM ET
NVR, Inc. (NYSE:NVR) , 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
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