NYSE$NVR

NVR Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Net income decreased due to reduction in secondary marketing gains on sales of loans.

NVR, Inc. reported a decrease in net income and diluted earnings per share for the second quarter of 2020, with consolidated revenues also decreasing compared to the previous year. The decrease is primarily attributed to the disruption in the mortgage market related to the COVID-19 pandemic.

  • Net income for the second quarter ended June 30, 2020 was $164,075,000, or $42.50 per diluted share, decreased 22% and 20%, respectively, compared to 2019.
  • Consolidated revenues for the second quarter of 2020 totaled $1,620,368,000, a 10% decrease from the second quarter of 2019.
  • Homebuilding new orders in the second quarter of 2020 increased by 13% to 5,901 units.
  • Mortgage closed loan production in the second quarter of 2020 totaled $1,144,428,000, a decrease of 7% compared to the second quarter of 2019.

Headline financials

Total Revenue

$1.62B

Previous: $1.8B-10.0%
EPS (adj)

$42.50

Previous: $53.09-19.9%
Settlements

4.3K

No prior period
Loan Closings

$1.14B

Previous: $1.23B-7.0%
Capture Rate

89.0%

No prior period
Capital Expenditures

-$8.22M

Previous: -$10.7M+23.2%
Free Cash Flow

$156M

Previous: $200M-21.9%
Net Income

$164M

Previous: $210M-21.9%
Operating Income

$1.61B

Previous: $1.79B-10.0%
Gross Profit

$1.62B

Previous: $1.8B-10.0%
Cash & Equivalents

$2.03B

Previous: $906M+123.7%
Total Assets

$4.73B

Previous: $3.6B+31.3%
Stock-Based Comp

$14.4M

Previous: $18.6M-22.3%

Revenue & EPS history

NVR · Revenue · Quarterly

$1.62B

Q2 2020-10%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

NVR · $31.6M total across 1 segment · Q2 2020

  • Mortgage Banking
    $31.6M

Forward guidance

NVR is unable to predict the extent to which COVID-19 will impact their operational and financial performance.

Headwinds

  • Uncertainty regarding the extent and timing of disruption to our business that may result from COVID-19 and related governmental actions.
  • Uncertainty as to the effects of economic relief efforts on the U.S. economy.
  • Uncertainty regarding unemployment.
  • Uncertainty regarding consumer confidence.
  • Uncertainty regarding demand for our homes and the mortgage market, including lending standards and secondary mortgage markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.8%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.7%

Avg return

30 days after

46%

32 / 69 earnings

Positive

+11.9%

Q4 2016

Best reaction

-8.8%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-6.5%-13.1%
Q4 2025+1.6%+2.9%+0.2%
Q3 2025-1.3%-4.5%-5.2%
Q2 2025-1.2%-0.6%+1.4%
Q1 2025+1.1%+0.9%+1.2%
Q4 2024-3.8%-4.4%-14.3%
Q3 2024-2.5%-3.4%-7.3%
Q2 2024-2.7%-0.5%+4.0%
Q1 2024-0.1%-2.0%-5.3%
Q4 2023-0.4%+3.0%+7.3%
Q3 2023-2.3%-2.2%+13.0%
Q2 2023+2.4%+1.8%-2.6%
Q1 2023-4.8%-2.1%-5.6%
Q4 2022+6.7%+5.2%+3.9%
Q3 2022+3.4%+5.6%+11.2%
Q2 2022-2.1%-1.6%-2.2%
Q1 2022+0.2%+0.5%-0.1%
Q4 2021+3.1%-1.0%-7.5%
Q3 2021-3.5%-3.6%+3.3%
Q2 2021+2.3%+2.7%+5.3%
Q1 2021-1.6%+0.5%-5.1%
Q4 2020-2.0%-0.6%-0.8%
Q3 2020-0.2%-1.1%-0.8%
Q2 2020+10.5%+16.0%+25.2%
Q1 2020-0.0%+11.1%+10.1%
Q4 2019-1.2%-3.3%-5.1%
Q3 2019+1.1%-0.1%-4.9%
Q2 2019-0.3%-3.6%-0.2%
Q1 2019+4.2%+1.0%+5.3%
Q4 2018+1.6%+5.1%+6.3%
Q3 2018-3.6%-3.4%+6.7%
Q2 2018-8.8%-12.1%-17.2%
Q1 2018+0.6%+0.9%-2.5%
Q4 2017-8.4%-10.6%-16.4%
Q3 2017+11.1%+10.5%+12.4%
Q2 2017+8.9%+9.5%+9.7%
Q1 2017-3.0%-3.5%+7.8%
Q4 2016+11.9%+10.4%+13.4%
Q3 2016-2.4%-3.8%-1.3%
Q2 2016-1.3%-1.7%-4.0%
Q1 2016-2.9%
Q4 2015+3.9%
Q3 2015+4.7%
Q2 2015+3.8%
Q1 2015+2.1%
Q4 2014-3.0%
Q3 2014+7.5%
Q2 2014+7.8%
Q1 2014-6.4%
Q4 2013+10.3%
Q3 2013-2.4%
Q2 2013-0.3%
Q1 2013-0.3%
Q4 2012+5.4%
Q3 2012+3.3%
Q2 2012+5.0%
Q1 2012+1.6%
Q4 2011-1.7%
Q3 2011-1.1%
Q2 2011-5.2%
Q1 2010-0.1%
Q1 2011-1.0%
Q4 2008+1.9%
Q4 2010+1.9%
Q3 2009+2.9%
Q3 2010+2.9%
Q2 2009-0.5%
Q2 2010-0.5%
Q4 2009-0.5%

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