Earnings Spotlight:- NVR, Inc. (NYSE:NVR)

NVR, Inc. (NYSE:NVR) moved with change of 0.48% to $3055.67 with the total traded volume of 23481 shares versus to an average volume of 34.55K. The stock was down in the 5 days activity -1.59%. The one month performance of stock was -2.80%. NVR hares are at -16.61% for the quarter and driving a 41.74% return over the course of the past year and is now at -13.32% since this point in 2018.  Right now NVR beta is 0.65. The average volatility for the week and month was at 3.03% 3.62% respectively.

NVR, Inc. (NYSE:NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2018 of $166,049,000, or $39.34 per diluted share.  Net income and diluted earnings per share for the first quarter ended March 31, 2018 increased 61% and 57%, respectively, when compared to 2017 first quarter net income of $102,923,000, or $25.12 per diluted share.  Consolidated revenues for the first quarter of 2018 totaled $1,529,414,000, a 20% increase from $1,277,092,000 in the first quarter of 2017.

Net income and diluted earnings per share were favorably impacted by the reduction in the Company’s effective tax rate in the first quarter of 2018 to 13.1% from 22.1% in the first quarter of 2017.  The reduction in the effective tax rate was primarily due to the following items:

The enactment of the Tax Cuts and Jobs Act in December 2017, which lowered the Company’s federal statutory tax rate from 35% to 21%, and

The retroactive reinstatement of certain expired energy tax credits under the Bipartisan Budget Act of 2018, which resulted in the Company recognizing a tax benefit of approximately $6,200,000 related to homes settled in 2017.

Additionally, the effective tax rate in both the first quarter of 2018 and 2017 was favorably impacted by the recognition of an income tax benefit related to excess tax benefits from stock option exercises totaling $19,567,000 and $19,900,000, respectively.

Homebuilding

New orders in the first quarter of 2018 increased 17% to 5,174 units, when compared to 4,424 units in the first quarter of 2017. The average sales price of new orders in the first quarter of 2018 was $378,200, a decrease of 4% when compared with the first quarter of 2017.  The decrease in the average sales price of new orders is primarily attributable to a shift in new orders to lower priced markets and lower priced products.  Settlements increased in the first quarter of 2018 to 3,896 units, 20% higher than the first quarter of 2017.  The Company’s backlog of homes sold but not settled as of March 31, 2018 increased on a unit basis by 22% to 9,809 units and increased on a dollar basis by 17% to $3,744,523,000 when compared to March 31, 2017.

Homebuilding revenues in the first quarter of 2018 totaled $1,490,093,000, 19% higher than the year earlier period.  Gross profit margin in the first quarter of 2018 increased to 18.7%, compared to 17.8% in the first quarter of 2017.  Income before tax from the homebuilding segment totaled $168,570,000 in the first quarter of 2018, an increase of 44% when compared to the first quarter of 2017.

Mortgage Banking

Mortgage closed loan production in the first quarter of 2018 totaled $1,009,673,000, an increase of 20% when compared to the first quarter of 2017.  Income before tax from the mortgage banking segment totaled $22,428,000 in the first quarter of 2018, an increase of 50% when compared to $14,971,000 in the first quarter of 2017.

Shares of NVR, Inc. have been recently spotted trading -17.41% off of the 52-week high price. On the other end, company shares have been noted 50.60% away from the low price over the last 52-weeks. 52 week range of the stock remained $ 2028.99 – 3700.00. Switching over to some distances from popular moving averages, we see that the stock has been recorded 1.18% away from the 50 day moving average and 0.58% away from the 200 day moving average. Moving closer, we can see that shares have been trading 0.49% off of the 20-day moving average.

Peter Hamm

Peter Hamm is an author, journalist and CEO of the website. He has more than 5 years of experience in institutional investment markets, including fixed income, equities, derivatives and real estate. He has a Bachelor in Business Administration with a major in Finance. He bought his first stocks in a private business at age 15 and made his first public stock trade at 23. He has always been interested in the stock market and how it behaves. As the dad of two children, he’s made saving money and investing for them a high priority. Over many years of investing, he has made some wise choices and he’s made many mistakes. But he’s learned from both. Mr. Peter observations and experience give him the insight to stock market patterns and the investor behaviors that create them. He reports about Earnings news category. Address: 3876 Levy Court, EASTON, Pennsylvania Email: Peter@newscontrol.info

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