NVR (NVR) came out with quarterly earnings of $108.54 per share, beating the Zacks Consensus Estimate of $104.89 per share. This compares to earnings of $120.69 per share a year ago.
NVR's second-quarter 2025 performance is likely to have reflected softer-than-anticipated demand and higher expenses.
NVR (NVR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
NVR shares have dropped over 15% since December, Q1 earnings missed expectations significantly, with gross margins pressured by higher lot costs and pricing competition. The company is well run but gets sparse coverage from Wall Street despite a higher than $20 billion market capitalization. Recent quarterly results highlighted several trends that are negatively impacting the home building industry in 2025.
NVR faces significant macro headwinds, with declining community count, order book, and rising cancellations indicating weak forward sales momentum and pressure on profitability. 1Q25 results show cracks with a modest revenue increase but notable declines in net income, EPS, and gross profit margin due to higher lot costs and pricing pressure. The macro environment, including elevated mortgage rates and inflation, is creating a tough setup, leading to increased cancellations and the need for heavier incentives.
NVR's first quarter Homebuilding margins negatively impacted by higher lot costs and affordability pressures.
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.
NVR's first-quarter 2025 performance is likely to have benefited from higher settlements, improved pricing and strategic lot acquisitions.
NVR (NVR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The next quarters will be weak due to the backlog decrease, but the long-term thesis is supported by the accumulated housing shortage. NVR's management owns a 7.8% stake in the company and is strongly aligned with shareholders. There is an accumulated shortage of around 3.5M homes in the U.S., giving NVR ample room to grow in the future.
NVR, Inc. has a unique, low-debt business model that reduces risk during economic downturns, differentiating it from other homebuilders. The company only buys land when there's a confirmed buyer, minimizing financial exposure and capital expenditure. NVR's cost-plus contract model allows it to operate with less capital, enhancing its financial stability and operational efficiency.
NVR's fourth-quarter 2024 results reflect strong settlements and an increase in the average selling price of new orders, despite a decline in order volume.