NVR
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), NVR beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins were steady.
Revenue details
NVR logged revenue of $870.6 million. The eight analysts polled by S&P Capital IQ predicted revenue of $861.1 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $709.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $10.33. The seven earnings estimates compiled by S&P Capital IQ predicted $9.52 per share. GAAP EPS of $10.33 for Q3 were 29% higher than the prior-year quarter's $7.98 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 18.6%, 10 basis points worse than the prior-year quarter. Operating margin was 9.8%, 30 basis points worse than the prior-year quarter. Net margin was 6.1%, about the same as the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $904.7 million. On the bottom line, the average EPS estimate is $10.25.
Next year's average estimate for revenue is $3.13 billion. The average EPS estimate is $33.38.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 247 members out of 520 rating the stock outperform, and 273 members rating it underperform. Among 183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give NVR a green thumbs-up, and 103 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVR is hold, with an average price target of $861.17.
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