NVR Q4 Earnings & Homebuilding Revenues Beat Estimates, Up Y/Y

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]