Financial Performance - Net income for Q3 2024 was $429.3 million, a decrease of 1% from $433.2 million in Q3 2023, while diluted earnings per share increased by 4% to $130.50[1] - Consolidated revenues for Q3 2024 totaled $2.73 billion, reflecting a 6% increase from $2.57 billion in Q3 2023[1] - Homebuilding revenues for Q3 2024 were $2.68 billion, a 7% increase from $2.51 billion in Q3 2023[4] - The effective tax rate for Q3 2024 was 20.3%, up from 19.7% in Q3 2023[6] - Total assets as of September 30, 2024, were $6.49 billion, a decrease from $6.60 billion at the end of 2023[11] - Total shareholders' equity decreased to $4,271,248 as of September 30, 2024, from $4,364,725 as of December 31, 2023, reflecting a decline of approximately 2.1%[14] Orders and Backlog - New orders in Q3 2024 increased by 19% to 5,650 units compared to 4,746 units in Q3 2023[3] - The backlog of homes sold but not settled as of September 30, 2024, increased by 9% to 11,339 units and by 11% to $5.32 billion in dollar terms compared to the previous year[3] - New orders for the three months ended September 30, 2024, totaled 5,650 units with an average price of $450.7, compared to 4,746 units at an average price of $456.1 for the same period in 2023, representing an increase of 19.1% in units[16] - The backlog as of September 30, 2024, was 11,339 units with an average price of $469.5, up from 10,371 units at an average price of $463.1 in 2023, showing a growth of 9.3% in units[18] Settlements and Cancellations - Settlements for the three months ended September 30, 2024, were 5,908 units at an average price of $453.2, compared to 5,606 units at an average price of $448.0 in 2023, indicating a 5.4% increase in units[17] - The new order cancellation rate increased to 14.5% for 2024 from 13.6% in 2023, indicating a rise in cancellations[21] Mortgage Banking - Mortgage closed loan production in Q3 2024 totaled $1.66 billion, a 2% increase from Q3 2023[5] - Income before tax from the mortgage banking segment decreased by 9% to $34.9 million in Q3 2024 compared to $38.5 million in Q3 2023[5] - Loan closings for the three months ended September 30, 2024, amounted to $1,656,507, compared to $1,621,599 in 2023, reflecting an increase of 2.1%[21] - The capture rate for mortgage banking remained stable at 86% for both 2024 and 2023[21] Community and Lots - The average active communities decreased to 422 for the three months ended September 30, 2024, from 431 in 2023, reflecting a decline of 2.1%[20] - Lots controlled at the end of the period increased to 151,800 in 2024 from 133,900 in 2023, representing a growth of 13.4%[21] Share Repurchase - The aggregate cost of shares repurchased in 2024 was $357,450, down from $484,262 in 2023, indicating a decrease of 26.2%[21]

Company Performance - NVR reported quarterly earnings of $130.50 per share, missing the Zacks Consensus Estimate of $132.08 per share, but showing an increase from $125.26 per share a year ago, representing an earnings surprise of -1.20% [1] - The company posted revenues of $2.68 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.78% and increasing from $2.51 billion year-over-year [1] - Over the last four quarters, NVR has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [1] Stock Performance - NVR shares have increased approximately 37.9% since the beginning of the year, outperforming the S&P 500's gain of 22.7% [2] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $132.43 on revenues of $2.66 billion, and for the current fiscal year, it is $500.28 on revenues of $10.26 billion [4] - The estimate revisions trend for NVR is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Context - The Building Products - Home Builders industry is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [5] - M/I Homes, another company in the same industry, is expected to report quarterly earnings of $4.94 per share, reflecting a year-over-year change of +2.5%, with revenues anticipated to be $1.13 billion, up 7.7% from the previous year [5]

NVR, Inc. (NVR) is likely to generate higher earnings and homebuilding revenues in third-quarter 2024 on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, earnings slightly missed the Zacks Consensus Estimate, while the homebuilding revenues beat the same by 2.7%. On a year-over-year basis, earnings and homebuilding revenues increased 3.6% and 12%, respectively.The company’s earnings topped analysts’ expectations in six of the trail ...

NVR, Inc.'s (NVR) stock gained 34.9% in the year-to-date period compared with the Zacks Building Products - Home Builders industry's 25.2% growth, the Zacks Construction sector's 22% rise and the S&P 500's 20.8% rally. The stock has been rallying on a recent rate cut by the Federal Reserve, announced last month. NVR, which engages in the construction and sale of single-family detached homes, townhomes and condominium buildings, has been benefiting from improving demand, a disciplined business model, and str ...

Jessie Casson/DigitalVision via Getty Images Introduction Shares of NVR, Inc. (NYSE:NVR) have been on a role lately, rising 29% year to date and 24% since my initial coverage back in March 2024. At the time, my investment thesis was built around the fact that the company had an asset-light operating model through strategic purchasing of finished building lots which gives the company flexibility, reduces risk, and boosts return on capital. For those reasons, I felt comfortable underwriting a premium valuatio ...

A month has gone by since the last earnings report for NVR (NVR) . Shares have added about 6.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is NVR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. NVR Q2 Earnings Miss, Homebuilding Revenues Top NVR reported mixed ...

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 ...