NVR, Inc. NVR , one of the nation's largest homebuilding and mortgage-banking companies, reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate of $19.74 by 27.3%. The reported figure also rose 59% from the year-ago profit level of $15.79 per share.
Total revenue (Homebuilding & Mortgage Banking fees) totaled $1.28 billion in the quarter and increased 12% year over year, driven by higher housing revenues and mortgage-banking fees.
Homebuilding : In the reported quarter, homebuilding revenues rose 11% year over year to $1.25 billion.
New orders climbed 7% to 4,424 homes, driven by demand growth in the housing markets served by NVR. Settlements increased 8% year over year to 3,256 units. Average settlement price was $392,600, up 5% from a year ago.
At the end of the reported quarter, average community count was 486, up 1.8% year over year.
The company's backlog totaled 8,052 homes (as of Mar 31, 2017), up 9% year over year. Potential housing revenues from backlog increased 13% to $3.19 billion.
Gross profit margin expanded 30 basis points (bps) to 17.8%.
As a percentage of homebuilding revenues, selling, general and administrative expenses (SG&A) were 8%, down 70 bps year over year.
Homebuilding operating margin increased 100 bps year over year to 9.8%.
Mortgage Banking : In the quarter, Mortgage banking fees grew 31.1% year over year to $29.5 million. Mortgage closed loan production in the quarter totaled $843.3 million, reflecting an increase of 12% year over year.
NVR's cash and cash equivalents totaled $492.5 million as of Mar 31, 2017, compared with $395.4 million as of Dec 31, 2016.
NVR, Inc. Price, Consensus and EPS Surprise
NVR, Inc. Price, Consensus and EPS Surprise | NVR, Inc. Quote
NVR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (strong Buy) stocks here .
Upcoming Releases in the Construction Sector
Masco Corporation MAS is slated to release its quarterly results on Apr 25. The Zacks Consensus Estimate for earnings is pegged at 36 cents, an increase of 11.3% year over year.
PulteGroup, Inc. PHM is slated to release its quarterly results on Apr 25. The Zacks Consensus Estimate for earnings is 28 cents, an increase of 16.7% on a year-over-year basis.
Louisiana-Pacific Corp. LPX is scheduled to release its quarterly numbers on May 5. The Zacks Consensus Estimate for earnings is pegged at 29 cents, an increase of 319.1% on a year-over-year basis.
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