NVR, Inc. Third Quarter Earnings Sneak Peek

NVR, Inc. (AMEX:NVR) will unveil its latest earnings on Friday, October 21, 2011. NVR is engaged in the construction and sale of single-family detached homes, townhomes, and condominium buildings.

NVR, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $7.74 per share, a rise of 5.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $8.63. Between one and three months ago, the average estimate moved down. It has been unchanged at $7.74 during the last month. For the year, analysts are projecting profit of $26.49 per share, a decline of 20.7% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported net income of $6.48 per share against a mean estimate of profit of $6.20 per share. In the first quarter, it missed forecasts by $1.85.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 9.3% in revenue from the year-earlier quarter to $723.6 million.

Analyst Ratings: Analysts are bullish on NVR as three analysts rate it as a buy, none rate it as a sell and three rate it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit fell 46.1% to $38.4 million ($6.48 a share) from $71.3 million ($11.13 a share) the year earlier, but exceeded analyst expectations. Revenue fell 27.7% to $697.4 million from $964.5 million.

Key Stats:

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 35.3% over the past four quarters. The quarter hit the hardest was the first quarter, that saw a 52.7% drop.

Revenue has fallen in the past two quarters. In the first quarter, the figure fell 12.9%.

Competitors to Watch: D.R. Horton, Inc. (NYSE:DHI), M.D.C. Holdings, Inc. (NYSE:MDC), Comstock Homebuilding Companies, Inc. (NASDAQ:CHCI), The Ryland Group, Inc. (NYSE:RYL), Standard Pacific Corp. (NYSE:SPF), M/I Homes, Inc. (NYSE:MHO), Orleans Homebuilders (OHBIQ), PulteGroup, Inc. (NYSE:PHM), Hovnanian Enterprises, Inc. (NYSE:HOV), and KB Home (NYSE:KBH).

Stock Price Performance: During July 22, 2011 to October 17, 2011, the stock price had fallen $78.32 (-11.1%) from $703.31 to $624.99. The stock price saw one of its best stretches over the last year between January 4, 2011 and January 18, 2011 when shares rose for 10-straight days, rising 17.5% (+$119.68) over that span. It saw one of its worst periods between July 7, 2011 and July 13, 2011 when shares fell for five-straight days, falling 4.6% (-$34.52) over that span. Shares are down $66.03 (-9.6%) year to date.

(Source: Xignite Financials)

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