NVR Q3 Profit Rises - Update

(RTTNews) - Homebuilding and mortgage banking company NVR, Inc. (NVR) Monday reported higher third-quarter profit, as growth in homebuilding revenues and margins more than offset a drop in mortgage banking.

Net income for the quarter increased to $90.15 million or $20.70 per share from $82.94 million or $17.67 per share in the prior year.

On average, 10 analysts polled by Thomson-Reuters had a consensus earnings estimate of $20.48. Analysts' estimates typically exclude one-time items.

Consolidated revenues for the quarter edged up 1 percent to $1.20 billion from $1.19 billion last year. Analysts expected revenues of $1.25 billion.

Homebuilding revenues improved 2 percent to $1.19 billion. Gross profit margin was 19 percent, compared to 17.4 percent a year earlier.

Cancellation rate was 16 percent compared to 19 percent in the year-ago quarter, and 13 percent in the second quarter of 2014. Settlements decreased 3 percent to 3,236 units when compared to the same last year.

New orders climbed 23 percent to 2,936 units from 2,381 units last year. As of September 30, 2014, backlog of homes sold but not settled increased 10 percent to 6,231 units, and was up on a dollar basis by 14 percent to $2.36 billion.

Mortgage banking fees declined to $18.01 million from $21.37 million a year ago. In Mortgage Banking operations, operating income fell 38 percent to $7.28 million. Mortgage closed loan production of $803.13 million, up 15 percent from last year.

NVR is currently trading at $1,169.59, up $44.09, or 3.92 percent.