What to expect from an NVR report

NVR, Inc. (NVR), headquartered in Reston, Virginia, is a construction company in the United States. The company has a market capitalization of $23.25 billion. The company sells and builds single-family homes, townhomes, and apartment buildings under the Ryan Homes, NVHomes, and Heartland Homes brands. It also offers mortgage banking and title services. The leading construction company is expected to report its financial results for the second quarter of fiscal 2024 on Tuesday, July 23.

Ahead of the event, analysts expect NVR to report earnings 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 topped Wall Street earnings per share estimates in its last four quarterly reports.

For fiscal 2024, analysts expect NVR to post earnings per share of $493.93, up 6.6% from earnings per share of $463.31 in fiscal 2023.

NVR shares underperformed the S&P 500 ($SPX)’s 17% YTD gain, while the stock was up 6.9% in the period. However, they outperformed the S&P 500 Cons Disc Sector SPDR (XLY)’s 5.7% gain in the same period.

On April 23, NVR reported its first-quarter earnings. Earnings per share came in at $116.41, topping the consensus estimate of $106.03. Revenue came in at $2.29 billion, topping Wall Street’s estimate of $2.15 billion. New home orders rose 3% year over year to 6,049 units. NVR’s gross profit margin in its residential construction business fell to 24.5% from 24.6% in the year-ago quarter. NVR shares closed slightly higher on the earnings day but have been on a downward trend since then.

Analysts are unanimous in calling NVR stock bullish, with an overall rating of “Moderate Buy.” Of the five analysts covering the stock, two recommend a “Strong Buy” rating, while three recommend a “Hold.” The average analyst price target for NVR is $8,241.25, indicating an 11% potential upside from current levels.

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On the date of publication, Dipanjan Banchur did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please refer to Barchart’s Disclosure Policy here.