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Sep 30, 2020
NVR Q3 2020 Earnings Report
NVR's net income and diluted earnings per share increased compared to Q3 2019.
Key Takeaways
NVR, Inc. reported a strong third quarter with a 15% increase in net income and a 16% increase in diluted earnings per share compared to the third quarter of 2019. Consolidated revenues also increased by 4%.
Net income increased by 15% to $256.47 million, compared to Q3 2019.
Diluted earnings per share increased by 16% to $65.11, compared to Q3 2019.
Consolidated revenues increased by 4% to $1,990.01 million, compared to Q3 2019.
Homebuilding new orders increased by 40% to 6,681 units.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The COVID-19 pandemic has had a significant impact on all facets of NVR's business, creating uncertainty regarding the extent and timing of disruption and the effects of economic relief efforts.
Positive Outlook
- NVR is currently able to operate in all of the markets it serves.
- The company continues to operate in accordance with safety guidelines issued by the Centers for Disease Control and Prevention as well as state and local guidelines.
- New orders were favorably impacted by robust demand attributable to historically low mortgage interest rates
- New orders were favorably impacted by lower resale inventory levels.
- Backlog of homes increased on a unit and dollar basis.
Challenges Ahead
- There is uncertainty regarding the extent and timing of disruption to our business that may result from COVID-19 and related governmental actions.
- There is uncertainty as to the effects of economic relief efforts on the U.S. economy.
- Uncertainty remains regarding unemployment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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