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

NVR, Inc. NVR reported impressive fourth-quarter 2024 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.See the Zacks Earnings Calendar to stay ahead of market-making news.The quarterly performance showed strong growth in settlements. Although new orders decreased in the quarter, the average selling price increased.Shares of this leading homebuilder inched down 3.8% during yesterday’s trading session. Investors’ sentiments are likely to have been hurt by a decline in new orders.Inside NVR’s HeadlinesThe company reported earnings of $139.93 per share, which surpassed the Zacks Consensus Estimate of $126.41 by 10.7%. The reported figure increased 15% from the prior-year quarter’s earnings of $121.56 per share.NVR, Inc. Price, Consensus and EPS Surprise NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. QuoteHomebuilding revenues of $2.78 billion topped the consensus mark of $2.69 billion by 3.3%. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.85 billion, up 17% on a year-over-year basis.Segment Details of NVRHomebuilding: The segment’s revenues grew 16% from the year-ago quarter. Settlements in the quarter were up 16% year over year to 6,180 units. Our model predicted settlements to increase 10.2% year over year to 5,875 units. The average selling price (“ASP”) for settlements was flat year over year at $450,000. Our estimate for the metric was $454,400.The gross margin contracted 50 basis points year over year to 23.6%. Our estimate for the metric was 23.4%.New orders decreased 8% from the prior-year quarter’s level to 4,794 units. However, the ASP of new orders increased 4% from the prior-year quarter’s figure to $469,000. Our model predicted the ASP of new orders to increase 1.8% year over year to $459,100. The cancellation rate was 17%, up from 13% a year ago.On a unit basis, backlog at the end of Dec. 31, 2024, decreased 3% from the prior-year quarter’s figure to 9,953 homes but rose 1% on a dollar basis to $4.79 billion.The average active communities were 426 in the quarter, down from 438 reported a year ago.Mortgage Banking: Mortgage banking fees increased 42.7% year over year to $64.9 million. Mortgage closed loan production totaled $1.70 billion, up 13% year over year. The capture rate was 86% in the fourth quarter, down from 88% a year ago.NVR’s 2024 HighlightsEarnings were $506.69 per share, indicating an increase from $463.31 reported a year ago. Homebuilding revenues were $10.29 billion, up from $9.31 billion in 2023. Total revenues were $10.52 billion, up 11% year over year. Settlements were 22,836 units, up 11%. Gross margin for the year decreased to 23.7% from 24.3% in 2023. Nonetheless, new orders grew 4% to 22,560 units for the year from 2023 level.NVR’s FinancialsAs of Dec. 31, 2024, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $2.56 billion and $49.6 million, respectively, compared with $3.13 billion and $36.4 million at 2023-end.During 2024, NVR repurchased 256,871 shares for $2.1 billion. At December 2024-end, the company had 3,011,644 shares outstanding.NVR's Zacks Rank & Recent Peer ReleasesNVR currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.KB Home KBH reported impressive fiscal fourth-quarter 2024 results, wherein both revenues and earnings surpassed expectations. On a year-over-year basis, both metrics increased, highlighting its resilience in a fluctuating housing market.KB Home is optimistic about fiscal 2025. However, challenges such as mortgage rate headwinds and potential regulatory shifts could temper the pace of growth. Still, the company’s robust investments in land and its “Built to Order” model provide a cushion against market uncertainties.D.R. Horton, Inc. DHI reported first-quarter fiscal 2025 (ended Dec. 31, 2024) results, with earnings and revenues beating Zacks Consensus Estimate but decreasing on a year-over-year basis.Despite rising home inventories, the supply of affordable homes remains constrained, while favorable demographics continue to drive housing demand. To address affordability challenges and stimulate sales, the company leveraged incentives such as mortgage rate buydowns. Additionally, D.R. Horton focused on offering smaller, affordable floor plans to align with the needs of cost-conscious homebuyers.Lennar Corporation LEN reported tepid fourth-quarter fiscal 2024 results, wherein its adjusted earnings and total revenues missed the Zacks Consensus Estimate and declined year over year.The quarter’s performance was directly hit by a lag in the home sales pace, due to a high mortgage rate scenario and low ASP. Due to the affordability issue, the new orders during the quarter also showcased a downward trend.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KB Home (KBH): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report D.R. Horton, Inc. (DHI): Free Stock Analysis Report NVR, Inc. (NVR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks