Earnings Preview: What to Expect From NVR's Report

NVR, Inc. (NVR), headquartered in Reston, Virginia, is a homebuilder in the U.S. Valued at $23.25 billion by market cap, the company sells and constructs single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes brands. It also provides mortgage banking and title services. The leading homemaker is expected to announce its fiscal second-quarter earnings for 2024 on Tuesday, July 23.

Ahead of the event, analysts expect NVR to report a profit of $121.65 per share on a diluted basis, up 4.4% from $116.54 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.

For fiscal 2024, analysts expect NVR to report EPS of $493.93, up 6.6% from $463.31 in fiscal 2023.

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NVR stock has underperformed the S&P 500’s ($SPX) 17% gains on a YTD basis, with shares up 6.9% during this period. However, it has outperformed the S&P 500 Cons Disc Sector SPDR (XLY) 5.7% returns over the same time frame.

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On Apr. 23, NVR reported its Q1 results. Its EPS was $116.41, surpassing the consensus estimates of $106.03. The company’s revenue stood at $2.29 billion, beating the Wall Street estimates of $2.15 billion. Its new home orders rose 3% year over year to 6,049 units. NVR’s gross profit margin in the homebuilding segment fell to 24.5% from 24.6% in the prior-year quarter. NVR shares closed up marginally on the day the results were released but have been on a downtrend since then.

Analysts’ consensus opinion on NVR stock is bullish, with a “Moderate Buy” rating overall. Out of five analysts covering the stock, two advise a “Strong Buy” rating, and three recommend a “Hold.” The average analyst price target for NVR is $8,241.25, indicating an 11% potential upside from the current levels.

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On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.