NVR Meets on Revenues, Misses on EPS

Seth Jayson, The Motley Fool
Updated

NVR (NYS: NVR) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), NVR met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.


Gross margins shrank, operating margins grew, net margins improved.

Revenue details
NVR recorded revenue of $600.5 million. The 10 analysts polled by S&P Capital IQ predicted net sales of $604.2 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $517.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $3.90. The 11 earnings estimates compiled by S&P Capital IQ anticipated $4.20 per share. GAAP EPS of $3.90 for Q1 were 55% higher than the prior-year quarter's $2.52 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.1%, 70 basis points worse than the prior-year quarter. Operating margin was 5.2%, 40 basis points better than the prior-year quarter. Net margin was 3.3%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $831.2 million. On the bottom line, the average EPS estimate is $9.36.

Next year's average estimate for revenue is $3.13 billion. The average EPS estimate is $33.72.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 248 members out of 527 rating the stock outperform, and 279 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give NVR a green thumbs-up, and 118 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVR is hold, with an average price target of $754.29.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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