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Mar 31, 2021
NVR Q1 2021 Earnings Report
NVR's financial performance improved significantly, with substantial growth in net income, revenue, and earnings per share compared to the previous year.
Key Takeaways
NVR, Inc. reported a strong first quarter with a 42% increase in net income to $248.8 million and a 29% increase in consolidated revenues to $2.04 billion. The homebuilding segment saw a 26% increase in revenue, while the mortgage banking segment experienced a remarkable 411% increase in income before tax.
Net income increased by 42% to $248.8 million, or $63.21 per diluted share.
Consolidated revenues rose by 29% to $2.04 billion.
Homebuilding revenue increased by 26% to $1.96 billion, with a gross profit margin of 19.7%.
Mortgage banking income before tax increased by 411% to $58.6 million.
NVR
NVR
NVR Revenue by Geographic Location
Revenue by Geographic Location
Mid Atlantic Revenue
CapyFin.comNorth East Revenue
CapyFin.comMid East Revenue
CapyFin.comSouth East Revenue
CapyFin.com Forward Guidance
Although current demand for new homes is strong, there remains uncertainty regarding the extent and timing of disruption to our business that may result from COVID-19 and related governmental actions. There is also uncertainty as to the effects of economic relief efforts on the U.S. economy, unemployment, consumer confidence, demand for our homes and the mortgage market, including lending standards and secondary mortgage markets.
Positive Outlook
- Residential construction has been deemed an essential business in each of the markets we operate.
- Current demand for new homes is strong.
- Operating in accordance with the guidelines issued by the Centers for Disease Control and Prevention as well as state and local health department guidelines.
- Net income and diluted earnings per share for the first quarter ended March 31, 2021 increased 42% and 41%, respectively, when compared to 2020 first quarter net income of $175.7 million, or $44.96 per diluted share.
- Consolidated revenues for the first quarter of 2021 totaled $2.04 billion, which increased 29% from $1.58 billion in the first quarter of 2020.
Challenges Ahead
- 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, consumer confidence, demand for our homes and the mortgage market, including lending standards and secondary mortgage markets.
- Unable to predict the extent to which this will impact our operational and financial performance including the impact of future developments such as the duration and spread of COVID-19, corresponding governmental actions, and the impact of such on our employees, customers and trade partners.
- The COVID-19 pandemic has had a significant impact on all facets of our business.
- Increase in the effective tax rate quarter over quarter is primarily attributable to recognizing a lower income tax benefit related to excess tax benefits from stock option exercises in the first quarter of 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income