NYSE$NVR

NVR Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

NVR reported an increase in revenue and net income for Q4 2020.

NVR, Inc. reported a strong fourth quarter with an 18% increase in consolidated revenues and a 19% increase in net income compared to the same quarter in the previous year. The homebuilding segment saw revenue growth and increased new orders, while the mortgage banking segment benefited from higher loan volume and secondary marketing gains.

  • Consolidated revenues increased by 18% to $2,344,015,000 compared to Q4 2019.
  • Net income increased by 19% to $305,004,000, or $76.93 per diluted share, compared to Q4 2019.
  • Homebuilding new orders increased by 25% to 5,485 units.
  • Mortgage closed loan production increased by 17% to $1,659,219,000.

Headline financials

Total Revenue

$2.34B

Previous: $1.99B+17.8%
EPS (adj)

$76.93

Previous: $64.41+19.4%
New Orders

5.5K

Previous: 4.4K+24.9%
Settlements

6.1K

Previous: 5.3K+13.7%
Loan Closings

$1.66B

Previous: $1.42B+17.0%
Capture Rate

90.0%

Previous: 91.0%-1.1%
Effective Tax Rate

20.9%

Previous: 13.3%+57.1%
Capital Expenditures

$3.79M

Previous: $5.96M-36.4%
Free Cash Flow

$342M

Previous: $351M-2.6%
Net Income

$305M

Previous: $256M+19.1%
Operating Income

$336M

Previous: $276M+21.7%
Gross Profit

$524M

Previous: $426M+23.1%
Cash & Equivalents

$2.81B

Previous: $1.16B+142.1%
Total Assets

$5.78B

Previous: $3.81B+51.6%
Stock-Based Comp

$15.2M

Previous: $19.9M-23.3%

Revenue & EPS history

NVR · Revenue · Quarterly

$2.34B

Q4 2020+17.8%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

NVR · $2.35B total across 2 segments · Q4 2020

  • Homebuilding
    $2.26B
  • Mortgage Banking
    $83.8M

Forward guidance

The company did not provide specific forward guidance but noted continued uncertainty regarding the impact of COVID-19 on its business.

Tailwinds

  • Currently able to operate in all markets served.
  • Following safety guidelines issued by the Centers for Disease Control and Prevention as well as state and local guidelines.
  • Robust demand attributable to historically low mortgage rates.
  • Lower resale inventory levels.
  • Favorable impact on new orders.

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.
  • Unemployment rates may impact consumer confidence.
  • Demand for our homes may be impacted.
  • Mortgage market lending standards and secondary mortgage markets may be affected.

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 Q4 2020

Historical avgQ4 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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