NVR Fourth Quarter Results Top Estimates

(RTTNews) - Homebuilding and mortgage banking company NVR, Inc. (NVR) reported Monday a profit for the fourth quarter that surged 61 percent from last year, reflecting strong double-digit homebuilding revenue growth. Both earnings per share and quarterly revenues topped analysts' expectations.

Reston, Virginia-based NVR reported net income of $97.81 million or $21.15 per share for the fourth quarter, higher than $60.63 million or $11.98 per share in the prior-year quarter.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $16.26 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated revenue for the quarter grew 32 percent to $1.24 billion from $943.74 million in the same quarter last year. Nine Wall Street analysts had a consensus revenue estimate of $1.13 billion.

Homebuilding revenues also rose 32 percent from the year-ago quarter to $1.22 billion. However, mortgage banking income declined 19 percent to $7.44 million, reflecting an increase in general and administrative costs amid headcount growth. Mortgage closed loan production for the quarter grew 12 percent to $721.93 million from the year-ago quarter.

Gross profit margin for the quarter was down 10 basis points to 18.2 percent, while adjusted gross margin improved 120 basis points to 19.5 percent from last year.

New orders in the quarter were relatively flat with last year at 2,631 units. The cancellation rate in the quarter was 14.0 percent, compared to 15.0 percent in the year-ago quarter.

Settlements increased 20 percent from the year-ago quarter to 3,342 units.

At the end of the fourth quarter, backlog of homes sold but not settled declined 1 percent on a unit basis to 4,945 units, while it improved 7 percent on a dollar basis to $1.85 billion from the end of the year-ago quarter.

For fiscal 2013, the company reported net income of $266.48 million or $54.81 per share, higher than $180.59 million or $35.12 per share in the prior year. Consolidated revenue for the full year grew 32 percent to $4.21 billion from $3.18 billion in the previous year.

Street was looking for full-year 2013 earnings of $49.83 per share on annual revenues of $4.05 billion.

In Monday's regular trading session, NVR is currently trading at $1,069.00, up $60.64 or 6.01% on a volume of 4,425 shares.