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Sep 30, 2021
NVR Q3 2021 Earnings Report
Announced third quarter results with increased net income and revenue.
Key Takeaways
NVR, Inc. reported a strong third quarter with a 20% increase in consolidated revenues and a 29% increase in net income compared to the same quarter of the previous year. The homebuilding segment drove the revenue growth, while the mortgage banking segment experienced a decrease in income before tax due to lower secondary marketing gains.
Net income increased by 29% to $332.1 million, or $86.44 per diluted share.
Consolidated revenues increased by 20% to $2.40 billion.
Homebuilding revenues increased by 22% to $2.34 billion, with a gross profit margin increase to 22.2%.
New orders in the homebuilding segment decreased by 22% to 5,201 units, but the average sales price increased by 15% to $442,000.
NVR
NVR
NVR Revenue by Segment
NVR Revenue by Geographic Location
Revenue by Segment
Mortgage Banking Revenue
CapyFin.comRevenue by Geographic Location
Mid Atlantic Revenue
CapyFin.comNorth East Revenue
CapyFin.comMid East Revenue
CapyFin.comSouth East Revenue
CapyFin.com Forward Guidance
The company acknowledged the ongoing impact of the COVID-19 pandemic on its business, emphasizing its commitment to the safety and well-being of its employees, customers, and trade partners. Despite strong current demand for new homes, uncertainty remains regarding potential disruptions from COVID-19 and related governmental actions.
Positive Outlook
- Strong current demand for new homes.
- Focus on safety and well-being of stakeholders.
- Adherence to CDC and local health guidelines.
- Operational adjustments to minimize disruption.
- Proactive management of business challenges.
Challenges Ahead
- Uncertainty regarding the extent and timing of COVID-19 related disruptions.
- Potential impact of economic relief efforts on the U.S. economy.
- Possible effects on unemployment and consumer confidence.
- Potential impact on demand for new homes.
- Uncertainty in the mortgage market, including lending standards and secondary mortgage markets.