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Jun 30, 2020
NVR Q2 2020 Earnings Report
Net income decreased due to reduction in secondary marketing gains on sales of loans.
Key Takeaways
NVR, Inc. reported a decrease in net income and diluted earnings per share for the second quarter of 2020, with consolidated revenues also decreasing compared to the previous year. The decrease is primarily attributed to the disruption in the mortgage market related to the COVID-19 pandemic.
Net income for the second quarter ended June 30, 2020 was $164,075,000, or $42.50 per diluted share, decreased 22% and 20%, respectively, compared to 2019.
Consolidated revenues for the second quarter of 2020 totaled $1,620,368,000, a 10% decrease from the second quarter of 2019.
Homebuilding new orders in the second quarter of 2020 increased by 13% to 5,901 units.
Mortgage closed loan production in the second quarter of 2020 totaled $1,144,428,000, a decrease of 7% compared to the second quarter of 2019.
NVR
NVR
NVR Revenue by Segment
Revenue by Segment
Mortgage Banking Revenue
CapyFin.com Forward Guidance
NVR is unable to predict the extent to which COVID-19 will impact their operational and financial performance.
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.
- Uncertainty regarding unemployment.
- Uncertainty regarding consumer confidence.
- Uncertainty regarding demand for our homes and the mortgage market, including lending standards and secondary mortgage markets.