NVR, Inc (NVR) Beats on Q1 Earnings, Homebuilding Solid
NVR, Inc. 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
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 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 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 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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Masco Corporation (MAS): Free Stock Analysis Report
Louisiana-Pacific Corporation (LPX): Free Stock Analysis Report
PulteGroup, Inc. (PHM): Free Stock Analysis Report
NVR, Inc. (NVR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
