NVR(US:NVR) ZACKSยท2025-04-23 10:35Core Viewpoint - NVR, Inc. reported first-quarter 2025 results with earnings and Homebuilding revenues missing the Zacks Consensus Estimate, indicating challenges in the housing market despite some year-over-year revenue growth [1][3]. Homebuilding Segment - Homebuilding revenues increased by 3% year over year to $2.35 billion, but missed the consensus estimate of $2.38 billion [3][4]. - Settlements rose by 1% year over year to 5,133 units, falling short of the expected 10.2% increase [4]. - The average selling price (ASP) for settlements increased by 2% year over year to $457,900, slightly above the estimate of $454,400 [4]. - New orders decreased by 12% year over year to 5,345 units, with the ASP for new orders declining by 1% to $448,500 [5]. - The backlog decreased by 9% year over year to 10,165 homes, with a dollar value decline of 7% to $4.84 billion [6]. Financial Performance - Earnings per share (EPS) were reported at $94.83, missing the consensus estimate of $107.87 by 12.1% and down 18.5% from the prior year's $116.41 [3]. - Consolidated revenues, including Homebuilding and Mortgage Banking fees, amounted to $2.40 billion, reflecting a 3% year-over-year increase [3]. - The gross margin contracted by 260 basis points year over year to 21.9%, below the estimated 22% [5]. Mortgage Banking Operations - Mortgage banking fees increased by 11.2% year over year to $52.6 million, with closed loan production totaling $1.43 billion, up 4% year over year [7]. - The capture rate remained flat year over year at 86% [7]. Cash Position - As of March 31, 2025, NVR had cash and cash equivalents of $2.18 billion for Homebuilding and $34.2 million for Mortgage Banking, down from $2.56 billion and $49.6 million at the end of 2024 [8]. Share Repurchase - During 2024, NVR repurchased 77,120 shares for $583.4 million, with 2,944,615 shares outstanding at the end of the first quarter of 2025 [9].