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Sep 30, 2023

NVR Q3 2023 Earnings Report

Net income increased while consolidated revenues decreased.

Key Takeaways

NVR, Inc. reported a 5% increase in net income to $433.2 million and a 6% increase in diluted earnings per share to $125.26 for the third quarter ended September 30, 2023. However, consolidated revenues decreased by 7% to $2.57 billion compared to the third quarter of 2022.

Net income increased by 5% compared to Q3 2022.

Diluted earnings per share increased by 6% compared to Q3 2022.

Consolidated revenues decreased by 7% compared to Q3 2022.

Homebuilding gross profit margin increased to 24.3% from 23.6% in Q3 2022.

Total Revenue
$2.57B
Previous year: $2.78B
-7.5%
EPS
$125
Previous year: $119
+5.7%
New Orders
4.75K
Previous year: 4.42K
+7.4%
Avg Sales Price of New Orders
$456K
Previous year: $453K
+0.6%
Settlements
5.61K
Previous year: 5.95K
-5.8%
Gross Profit
$507M
Previous year: $527M
-3.7%
Cash and Equivalents
$2.91B
Previous year: $1.77B
+64.6%
Free Cash Flow
$651M
Previous year: $602M
+8.1%
Total Assets
$6.37B
Previous year: $5.39B
+18.2%

NVR

NVR

NVR Revenue by Segment

NVR Revenue by Geographic Location

Forward Guidance

The company provided forward-looking statements regarding market trends, financial position, business strategy, and future operations, but did not provide specific financial guidance for future periods.

Positive Outlook

  • Potential for market growth and expansion.
  • Strong financial position to support future investments.
  • Effective business strategies to drive performance.
  • Opportunities to improve operational efficiency.
  • Favorable market trends that could boost revenue and profits.

Challenges Ahead

  • General economic and business conditions.
  • Interest rate changes.
  • Competition.
  • Availability and cost of land and other raw materials.
  • Shortages of labor.

Revenue & Expenses

Visualization of income flow from segment revenue to net income