Workflow
NVR(NVR)
icon
Search documents
NVR, Inc.: Singing The Home Builder Blues
Seeking Alpha· 2025-07-02 16:46
Group 1 - The article highlights NVR, Inc. (NYSE: NVR) as a focus for 2025, indicating a previous assessment in December suggested the stock was at risk [2] - The Insiders Forum, managed by Bret Jensen, specializes in small and mid-cap stocks with significant insider purchases, aiming to outperform the Russell 2000 benchmark [2] Group 2 - The Insiders Forum portfolio consists of 12-25 top stocks across various sectors that are attractively valued [2]
NVR(NVR) - 2025 Q1 - Quarterly Report
2025-05-05 18:45
Financial Performance - Homebuilding revenues for Q1 2025 were $2,350,445, an increase of 2.8% compared to $2,286,177 in Q1 2024[16] - Net income for Q1 2025 was $299,576, a decrease of 24.0% from $394,269 in Q1 2024[16] - Basic earnings per share for Q1 2025 were $100.41, down from $123.76 in Q1 2024, reflecting a decline of 18.9%[16] - Operating income for Q1 2025 was $376,665, a decrease of 16.0% from $448,327 in Q1 2024[16] - Total consolidated revenues for the three months ended March 31, 2025, were $2,403,032, an increase of 2.98% from $2,333,463 in 2024[56] - Consolidated profit before taxes for the three months ended March 31, 2025, was $402,004, down from $470,692 in 2024[59] Assets and Liabilities - Total assets decreased to $6,195,533 as of March 31, 2025, down from $6,380,988 at the end of 2024, a reduction of 2.9%[10] - Total liabilities increased to $2,240,869 as of March 31, 2025, compared to $2,170,916 at the end of 2024, an increase of 3.2%[13] - Total shareholders' equity decreased to $3,954,664 as of March 31, 2025, down from $4,210,072 as of December 31, 2024, a decline of 6.1%[16] - Total segment assets as of March 31, 2025, were $3,669,261, an increase from $3,502,540 as of December 31, 2024[63] Cash Flow - Cash and cash equivalents at the end of Q1 2025 were $2,287,910, down from $2,924,793 at the end of Q1 2024, a decrease of 21.8%[19] - The company reported a net cash provided by operating activities of $207,781 for Q1 2025, compared to $146,458 in Q1 2024, an increase of 41.9%[19] - Cash and cash equivalents decreased to $2,176,902 as of March 31, 2025, from $2,561,339 as of December 31, 2024[10] Mortgage Banking - Mortgage banking income increased to $32,520 in Q1 2025, up from $29,014 in Q1 2024, reflecting an increase of 8.6%[16] - Mortgage banking segment profit increased to $33,706, up 13.9% from $29,656 in the previous year[59] Investments and Commitments - As of March 31, 2025, the company controlled approximately 159,000 lots under Lot Purchase Agreements (LPAs) with total deposits of approximately $792,600 in cash and $4,600 in letters of credit[29] - The company had an aggregate investment of approximately $37,700 in four joint ventures (JVs) expected to produce approximately 6,050 finished lots as of March 31, 2025[35] - The company had additional JV funding commitments totaling approximately $12,400 as of March 31, 2025[35] Impairments and Reserves - The company incurred pre-tax impairment charges on lot deposits of approximately $8,100 for the three months ended March 31, 2025, compared to a net expense reversal of approximately $7,500 for the same period in 2024[29] - The warranty reserve decreased to $129,792 as of March 31, 2025, from $133,095 at the beginning of the period[49] - The company recognized a provision of $17,234 for warranty reserves during the three months ended March 31, 2025[49] Taxation - The effective tax rate for the three months ended March 31, 2025, was 25.5%, up from 16.2% for the same period in 2024[89] - The company recognized $2,664 in income tax benefits for the three months ended March 31, 2025, compared to $43,793 for the same period in 2024[91] Shareholder Actions - The company repurchased 77,120 shares of common stock during the three months ended March 31, 2025[46] - The weighted average number of shares outstanding used to calculate basic earnings per share (EPS) was 2,983,502 for the three months ended March 31, 2025, down from 3,185,664 in 2024[43] Credit Facilities - The company entered into a $300,000 senior unsecured revolving credit facility on March 11, 2025, extending the maturity date to March 11, 2030[80] - The company had no borrowings outstanding under the Amended Credit Agreement as of March 31, 2025[81] Lease Expenses - Operating lease expense for the three months ended March 31, 2025, was $10,316, compared to $9,347 for the same period in 2024[88] - Total lease expense for the three months ended March 31, 2025, was $20,408, compared to $17,922 for the same period in 2024, representing an increase of 8.2%[88]
NVR Q1 Earnings Miss Estimates, Homebuilding Revenues Rise Y/Y
ZACKS· 2025-04-23 10:35
NVR, Inc. (NVR) reported first-quarter 2025 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Homebuilding revenues increased year over year, while the bottom line declined from the prior-year quarter’s figure.For the quarter, the Homebuilding segment reported a modest increase in settlements and settlement prices, while new orders and average sales prices declined. The backlog weakened, and gross margins compressed due to higher lot costs and affordability pressures. Me ...
NVR(NVR) - 2025 Q1 - Quarterly Results
2025-04-22 17:10
Financial Performance - Net income for Q1 2025 was $299.6 million, a decrease of 24% from $394.3 million in Q1 2024[2] - Consolidated revenues for Q1 2025 totaled $2.40 billion, an increase of 3% from $2.33 billion in Q1 2024[2] - Gross profit margin in Q1 2025 decreased to 21.9%, down from 24.5% in Q1 2024[4] - The effective tax rate for Q1 2025 was 25.5%, up from 16.2% in Q1 2024[6] Orders and Settlements - New orders in Q1 2025 decreased by 12% to 5,345 units compared to 6,049 units in Q1 2024[3] - Total new orders for Q1 2025 were 5,345 units with an average price of $448.5, a decrease of 11.6% in units from 6,049 units in Q1 2024 with an average price of $454.3[21] - Settlements in Q1 2025 totaled 5,133 units at an average price of $457.9, compared to 5,089 units in Q1 2024 with an average price of $449.2, indicating a slight increase in settlements[21] - Backlog of homes sold but not settled decreased by 9% to 10,165 units, and by 7% to $4.84 billion in dollar terms compared to Q1 2024[3] - The backlog as of March 31, 2025, was 10,165 units with an average price of $475.9, down from 11,189 units in the previous year with an average price of $466.4[21] Pricing and Market Trends - The average sales price of new orders in Q1 2025 was $448,500, a decrease of 1% from Q1 2024[3] - The average price for new orders in the North East region increased to $695.0 in Q1 2025 from $612.6 in Q1 2024, reflecting a significant price appreciation in that market[21] Mortgage Banking - Mortgage closed loan production in Q1 2025 totaled $1.43 billion, an increase of 4% from Q1 2024[5] - Income before tax from the mortgage banking segment increased by 12% to $32.5 million in Q1 2025[5] - Loan closings in mortgage banking reached $1,432,922 in Q1 2025, up from $1,378,009 in Q1 2024, reflecting a positive trend in mortgage activity[24] - The capture rate for mortgage banking remained stable at 86% for both Q1 2025 and Q1 2024, suggesting consistent performance in loan origination[24] Operational Metrics - The average active communities decreased to 401 in Q1 2025 from 427 in Q1 2024, reflecting a reduction in operational scale[24] - The new order cancellation rate increased to 16% in Q1 2025 from 13% in Q1 2024, indicating a rise in customer cancellations[24] - Lots controlled at the end of the period increased to 167,600 in Q1 2025 from 143,200 in Q1 2024, showing growth in land acquisition[24] Shareholder Returns - The company repurchased 77,120 shares at an aggregate cost of $583,394 in Q1 2025, compared to 66,858 shares for $496,936 in Q1 2024, indicating a commitment to returning value to shareholders[24]
NVR (NVR) Q1 Earnings and Revenues Lag Estimates
ZACKS· 2025-04-22 15:10
NVR (NVR) came out with quarterly earnings of $94.83 per share, missing the Zacks Consensus Estimate of $107.87 per share. This compares to earnings of $116.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -12.09%. A quarter ago, it was expected that this homebuilder would post earnings of $126.41 per share when it actually produced earnings of $139.93, delivering a surprise of 10.70%.Over the last four quarters, the company ...
NVR Gears Up to Report Q1 Earnings: What's in Store for the Stock?
ZACKS· 2025-04-21 17:45
Core Viewpoint - NVR, Inc. is expected to report lower earnings in Q1 2025 despite an increase in homebuilding revenues year-over-year, driven by adjustments to high mortgage rates and a strong business model [1][4]. Financial Performance - In the last reported quarter, NVR's earnings and homebuilding revenues exceeded the Zacks Consensus Estimate by 10.7% and 3.3%, respectively, with year-over-year increases of 15% in earnings and 16% in homebuilding revenues [1]. - The consensus estimate for Q1 2025's EPS has decreased to $107.87 from $108.23, indicating a 7.3% decline from the year-ago EPS of $116.41 [2]. - Revenue for the upcoming quarter is projected at $2.37 billion, reflecting a 3.9% increase from the previous year's $2.29 billion [3]. Revenue and Orders - Homebuilding revenues, which accounted for 97.8% of total revenues in 2024, are expected to grow 4.8% year-over-year to $2.4 billion in Q1 2025 [5]. - The average selling price of settlements is anticipated to improve by 1.2% year-over-year to $454,400, with total settlements expected to rise 3.6% to 5,271 units [5]. - Total new orders are projected to increase by 8.7% year-over-year to 6,577 units, with a backlog of 11,259 units valued at $5.42 billion, up from $5.22 billion a year ago [7]. Cost and Margin Outlook - The company's bottom line is expected to decrease year-over-year due to rising building materials and labor costs, with homebuilding gross margin projected at 22%, down 250 basis points from the previous year [6]. Earnings Prediction Model - The Zacks model does not predict an earnings beat for NVR in the upcoming quarter, as the company lacks a positive Earnings ESP and a favorable Zacks Rank [8]. - NVR's Earnings ESP stands at -1.62%, and it currently holds a Zacks Rank of 4 (Sell) [9].
Earnings Preview: NVR (NVR) Q1 Earnings Expected to Decline
ZACKS· 2025-04-15 15:05
Wall Street expects a year-over-year decline in earnings on higher revenues when NVR (NVR) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lo ...
NVR: Expect Some Weak Quarters, But The Investment Thesis Remains Strong
Seeking Alpha· 2025-04-11 17:58
Group 1 - Tomas Riba is an economist and former CFO who invests in high-quality companies capable of compounding cash flow over the long term [1] - His investment journey began in 2007, and he has a background in accounting and finance [1] - Riba has held the role of CFO for a holding company involved in various industries, including pharma, medical devices, textiles, food, and real estate [1] - Currently, he teaches courses on "Derivatives for risk management" and "Investment analysis" at a Master's Degree program in Financial Management [1] - Riba's investment strategy focuses on companies with strong competitive advantages, operating in growing industries, with expanding margins, low debt, and aligned management [1]
NVR, Inc.: A Rare Opportunity To Buy A Wonderful Company
Seeking Alpha· 2025-02-11 08:18
Group 1 - The article discusses the appeal of "boring" stocks, highlighting NVR, Inc. as a notable example that the author had not previously encountered [1] - The author emphasizes the importance of patience and self-aptitude in identifying stocks that can outperform the S&P 500 over the long term [1] - The article serves as a personal reflection and a tool for the author to enhance their investment skills and understanding of potential stock opportunities [1]
NVR Q4 Earnings & Homebuilding Revenues Beat Estimates, Up Y/Y
ZACKS· 2025-01-29 13:20
Core Insights - NVR, Inc. reported strong fourth-quarter 2024 results, with earnings and homebuilding revenues exceeding the Zacks Consensus Estimate, showing year-over-year growth [1][3] Financial Performance - Earnings per share were $139.93, surpassing the Zacks Consensus Estimate of $126.41 by 10.7%, and increased 15% from $121.56 in the prior-year quarter [3] - Homebuilding revenues reached $2.78 billion, exceeding the consensus mark of $2.69 billion by 3.3%, while consolidated revenues totaled $2.85 billion, up 17% year-over-year [3] - For the full year 2024, earnings were $506.69 per share, up from $463.31 in 2023, and homebuilding revenues increased to $10.29 billion from $9.31 billion [7] Segment Analysis - Homebuilding segment revenues grew 16% year-over-year, with settlements increasing 16% to 6,180 units, surpassing the model prediction of 5,875 units [4] - The average selling price (ASP) for settlements remained flat at $450,000, slightly below the estimated $454,400 [4] - New orders decreased by 8% to 4,794 units, but the ASP for new orders increased by 4% to $469,000 [5] Operational Metrics - The gross margin for homebuilding contracted by 50 basis points year-over-year to 23.6% [4] - The cancellation rate for new orders rose to 17% from 13% a year ago, while the backlog decreased by 3% in units but increased by 1% in dollar value to $4.79 billion [5] - The average active communities decreased to 426 from 438 reported a year ago [6] Mortgage Banking Performance - Mortgage banking fees increased by 42.7% year-over-year to $64.9 million, with closed loan production totaling $1.70 billion, up 13% [6] Shareholder Actions - NVR repurchased 256,871 shares for $2.1 billion during 2024, with 3,011,644 shares outstanding at the end of December 2024 [9]