NYSE$NVR

NVR Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

NVR's net income and diluted earnings per share increased compared to Q3 2019.

NVR, Inc. reported a strong third quarter with a 15% increase in net income and a 16% increase in diluted earnings per share compared to the third quarter of 2019. Consolidated revenues also increased by 4%.

  • Net income increased by 15% to $256.47 million, compared to Q3 2019.
  • Diluted earnings per share increased by 16% to $65.11, compared to Q3 2019.
  • Consolidated revenues increased by 4% to $1,990.01 million, compared to Q3 2019.
  • Homebuilding new orders increased by 40% to 6,681 units.

Headline financials

Total Revenue

$1.99B

Previous: $1.91B+4.1%
EPS (adj)

$65.11

Previous: $56.11+16.0%
New Orders

6.7K

No prior period
Avg. Sales Price of Orders

$384K

No prior period
Settlements

5.2K

No prior period
Loan Closings

$1.38B

No prior period
Capture Rate

89.0%

Previous: 90.0%-1.1%
Capital Expenditures

-$12.3M

Previous: -$16.7M+26.4%
Free Cash Flow

$244M

Previous: $207M+17.9%
Net Income

$256M

Previous: $224M+14.6%
Operating Income

$1.98B

Previous: $1.9B+4.2%
Gross Profit

$1.99B

Previous: $1.91B+4.1%
Cash & Equivalents

$2.59B

Previous: $1.12B+132.3%
Total Assets

$5.5B

Previous: $3.84B+43.1%
Stock-Based Comp

$13.6M

Previous: $20.8M-34.3%

Revenue & EPS history

NVR · Revenue · Quarterly

$1.99B

Q3 2020+4.1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

NVR · $69.3M total across 1 segment · Q3 2020

  • Mortgage Banking
    $69.3M

Forward guidance

The COVID-19 pandemic has had a significant impact on all facets of NVR's business, creating uncertainty regarding the extent and timing of disruption and the effects of economic relief efforts.

Tailwinds

  • NVR is currently able to operate in all of the markets it serves.
  • The company continues to operate in accordance with safety guidelines issued by the Centers for Disease Control and Prevention as well as state and local guidelines.
  • New orders were favorably impacted by robust demand attributable to historically low mortgage interest rates
  • New orders were favorably impacted by lower resale inventory levels.
  • Backlog of homes increased on a unit and dollar basis.

Headwinds

  • There is uncertainty regarding the extent and timing of disruption to our business that may result from COVID-19 and related governmental actions.
  • There is uncertainty as to the effects of economic relief efforts on the U.S. economy.
  • Uncertainty remains regarding unemployment.
  • Uncertainty remains regarding consumer confidence.
  • Uncertainty remains 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 Q3 2020

Historical avgQ3 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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