The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NVR beat expectations 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.
Margins expanded across the board.
NVR reported revenue of $943.7 million. The eight analysts polled by S&P Capital IQ predicted revenue of $922.8 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $743.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $11.98. The seven earnings estimates compiled by S&P Capital IQ predicted $11.16 per share. GAAP EPS of $11.98 for Q4 were 90% higher than the prior-year quarter's $6.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.0%, 240 basis points better than the prior-year quarter. Operating margin was 10.7%, 330 basis points better than the prior-year quarter. Net margin was 6.4%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $767.4 million. On the bottom line, the average EPS estimate is $7.11.
Next year's average estimate for revenue is $3.90 billion. The average EPS estimate is $49.22.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 249 members out of 519 rating the stock outperform, and 270 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give NVR a green thumbs-up, and 99 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 $856.00.
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