NVR Stock Down as Q3 Earnings Lag, Homebuilding Revenues Top

NVR, Inc. NVR reported mixed third-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and Homebuilding revenues surpassing the same. On the other hand, both metrics increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.This upside was backed by improved demand trends, which resulted in higher settlements. Although the cancellation rate increased in the quarter, growth in new orders is encouraging for the company.Shares of this leading homebuilder inched down 2.3% during yesterday’s trading session.Inside NVR’s HeadlinesThe company reported earnings of $130.50 per share, which missed the Zacks Consensus Estimate of $132.08 by 1.2%. The reported figure increased 4.2% from the prior-year quarter’s earnings of $125.26 per share.NVR, Inc. Price, Consensus and EPS Surprise NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. QuoteHomebuilding revenues of $2.68 billion topped the consensus mark of $2.66 billion by 0.8%. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.73 billion, up 6% on a year-over-year basis.Segment Details of NVRHomebuilding: The segment’s revenues grew 7% from the year-ago quarter. Settlements in the quarter were up 5% year over year to 5,908 units. Our model predicted settlements to increase 4.5% year over year to 5,858 units. The average selling price (ASP) for the settlements was $453,200, up 1% year over year. Our estimate for the metric was $449,700.The gross margin contracted 90 basis points year over year to 23.4%, due to higher lot costs and closing cost assistance. Our estimate for the metric was 24.2%.New orders increased 19% from the prior-year quarter’s level to 5,650 units. The ASP of new orders decreased 1% from the prior-year quarter’s figure to $450,700. Our model predicted the ASP of new orders to increase 1.2% year over year to $461,500. The cancellation rate was 14.5%, up from 13.6% a year ago.On a unit basis, backlog at the end of Sept. 30, 2024, improved 9% from the prior-year quarter’s figure to 11,339 homes and rose 11% on a dollar basis to $5.32 billion.The average active communities were 422 in the quarter, down from 431 reported a year ago.Mortgage Banking: Mortgage banking fees decreased 2.3% year over year to $55.3 million. Mortgage closed loan production totaled $1.66 billion, up 2% year over year. The capture rate was 86% in the third quarter, down from 89% a year ago.NVR’s FinancialsAs of Sept. 30, 2024, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $2.47 billion and $36.7 million, respectively, compared with $3.13 billion and $36.4 million at 2023-end.During the third quarter, NVR repurchased 42,629 shares for $357.4 million. At September 2024 end, the company had 3,064,790 shares outstanding.NVR's Zacks Rank & Recent Peer ReleasesNVR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.PulteGroup Inc. PHM reported impressive results in the third quarter of 2024, wherein earnings and total revenues handily beat the Zacks Consensus Estimate and grew year over year.The quarter’s result reflects the successful execution of the company’s balanced spec and build-to-order operating model. This, alongside the structural shortage of homes from years of underbuilding, continued to favor the company. Thanks to such tailwinds, the home closings during the quarter grew year over year resulting in record third-quarter home sale revenues.Lennar Corporation LEN reported third-quarter fiscal 2024 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.On a year-over-year basis, revenues increased, given the company’s emphasis on maintaining a steady production rate to drive sales momentum. Lennar strategically utilized pricing, incentives, marketing expenditure and dynamic pricing insights to ensure steady sales volume despite fluctuations in interest rates.KB Home KBH reported mixed results for third-quarter fiscal 2024 (ended Aug. 31, 2024). Its earnings met the Zacks Consensus Estimate, while revenues beat the same. On a year-over-year basis, both metrics increased.The company noted that it experienced variability in demand across the quarter, with softening in late June through July. The trend was diverse as buyers continued to evaluate elevated mortgage rates and general economic concerns. Nonetheless, orders stabilized on improving rates.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 PulteGroup, Inc. (PHM): Free Stock Analysis Report KB Home (KBH): Free Stock Analysis Report Lennar Corporation (LEN): 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