NVR (NVR) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual investors often find it ...

Investment Rating - The report does not provide a specific investment rating for the company [3]. Core Views - The company's new home sales volume and average price remain stable, leading to consistent cash inflows. The company holds cash significantly exceeding its interest-bearing debt, allowing for ongoing business development and stock buybacks. Since 2021, the company has repurchased over $1 billion annually, with $1.136 billion repurchased in the first half of 2024 alone, indicating strong shareholder returns [1][3]. - The company's stock price corresponds to a valuation of approximately 17.5X PE for 2023, and with increasing expectations of interest rate cuts in the U.S., the company's performance sensitivity to these cuts and stock price elasticity will become evident, suggesting active monitoring [1]. Financial Performance Summary - As of the end of Q2 2024, the company's total capital debt ratio is 18.1%, indicating a low level of leverage. The company holds $2.53 billion in cash and equivalents against $912 million in interest-bearing debt, providing a solid financial foundation for operations and stock buybacks [1][6]. - In Q2 2024, the company reported total revenue of $2.61 billion, a year-on-year increase of 11.7%. Home sales revenue and loan fees were $2.548 billion and $64.566 million, respectively. Net profit was $401 million, a slight decrease of 0.8% year-on-year, with an EPS of $128.2, reflecting a 3.5% increase [3][4]. - The new home sales volume in Q2 2024 was 6,067 units, up 3% year-on-year, with an average selling price of $458,800, also up 3%. The revenue from home sales reached $2.55 billion, a 12% increase year-on-year, driven by an 11% increase in the number of new homes delivered [3][4]. - The company’s loan business also showed growth, with total loans completed in Q2 2024 amounting to $1.53 billion, a 10.7% increase year-on-year, and loan fee income rising by 18.3% to $64.566 million [3][4]. Share Buyback and Capital Management - The company has ample buyback capacity, having repurchased $639 million in Q2 2024 and a total of $1.136 billion in the first half of 2024, exceeding the total buyback amount for the previous year. A new long-term buyback plan of $750 million was authorized on May 7, 2024 [3][8].

The upside was backed by improved demand trends, which resulted in higher settlements. Although the cancellation rate increased during the quarter, growth in new orders and increased average selling price ("ASP") of new orders are encouraging for the company's prospects. Inside the Numbers Homebuilding: The segment's revenues of $2.55 billion grew 12% from the year-ago quarter. Settlements in the quarter were up 11% year over year to 5,659 units. Our model predicted settlements to increase 8% year over year ...

NVR shares have added about 23.4% since the beginning of the year versus the S&P 500's gain of 16.7%. What's Next for NVR? NVR (NVR) came out with quarterly earnings of $120.69 per share, missing the Zacks Consensus Estimate of $121.65 per share. This compares to earnings of $116.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.79%. A quarter ago, it was expected that this homebuilder would post earnings of $106.03 per s ...

Exhibit 99.1 NVR, INC. ANNOUNCES SECOND QUARTER RESULTS July 23, 2024, Reston, VA—NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2024 of $400.9 million, or $120.69 per diluted share. For the second quarter ended June 30, 2024, net income decreased 1% and diluted earnings per share increased 4%, when compared to 2023 second quarter net income of $404.0 million, or $116.54 per diluted share. Consolidate ...

For the six months ended June 30, 2024, consolidated revenues were $4.95 billion, a 10% increase from $4.52 billion reported for the same period of 2023. Net income for the six months ended June 30, 2024 was $795.2 million, an increase of 6% when compared to net income for the six months ended June 30, 2023 of $748.4 million. Diluted earnings per share for the six months ended June 30, 2024 was $237.05, an increase of 9% from $216.52 per diluted share for the same period of 2023. New orders in the second qu ...

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained stable at $121.65 over the past 60 days. The estimated figure indicates a rise of 4.4% from the year-ago quarter. NVR's second-quarter Homebuilding revenues (which accounted for 98.4% of 2023 total revenues) are expected to have increased from the year-ago level on improving demand trends. The upside is mainly backed by the low supply of existing homes and decreasing cancelation rates. Also, a strong busin ...

NVR Inc. (NYSE:NVR) was the first company I covered on Seeking Alpha. I initiated coverage in August 2023 with a "Buy" rating. Thomas Barwick/DigitalVision via Getty Images Investment Thesis The drivers of the business have not changed much since then. Although the stock has slightly underperformed the broader market, I believe the outlook remains positive. High mortgage rates have mixed effects, not solely negative, as the market perceives. Combined with factors such as the housing shortage, the business i ...

NVR (NVR) shares rallied 3% in the last trading session to close at $7,680.73. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.3% loss over the past four weeks. NVR has been benefiting from improving housing market demand and solid business model. This homebuilder is expected to post quarterly earnings of $121.65 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues a ...

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