The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NVR whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped, and GAAP earnings per share dropped significantly.
Margins contracted across the board.
NVR tallied revenue of $728.8 million. The 10 analysts polled by S&P Capital IQ anticipated net sales of $816.4 million. Sales were 8.6% lower than the prior-year quarter's $794.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $6.32. The 10 earnings estimates compiled by S&P Capital IQ predicted $10.36 per share on the same basis. GAAP EPS of $7.98 for Q4 were 37% lower than the prior-year quarter's $9.97 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 16.0%, 290 basis points worse than the prior-year quarter. Operating margin was 6.8%, 450 basis points worse than the prior-year quarter. Net margin was 4.4%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $588.4 million. On the bottom line, the average EPS estimate is $4.04.
Next year's average estimate for revenue is $3.00 billion. The average EPS estimate is $35.84.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 245 members out of 524 rating the stock outperform, and 279 members rating it underperform. Among 212 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give NVR a green thumbs-up, and 128 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVR is outperform, with an average price target of $733.71.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.