NVR, Inc. Set to Reveal Q1 Results Amid Mixed Analyst Opinions

Reston, Virginia-based NVR, Inc. (NVR) specializes in the construction and sale of single-family homes, townhomes, and condominiums, primarily operating on a pre-sold basis. With a market capitalization of $22 billion, NVR conducts business through its Homebuilding and Mortgage Banking segments.

The residential construction giant is scheduled to announce its first-quarter results on Tuesday, April 22. As the event approaches, analysts anticipate NVR will report adjusted earnings of $108.23 per share, reflecting a 7% decline from the $116.41 reported in the same quarter last year. Over the past four quarters, NVR has missed analysts’ bottom-line estimates twice, while it exceeded expectations on two occasions.

For the entire fiscal year 2025, NVR’s earnings are projected to reach $504.28 per share, slightly down from $506.69 in fiscal 2024. However, a rebound is expected in fiscal 2026, with earnings forecasted to grow 7.8% year-over-year to $543.36 per share.

NVR’s stock has decreased by 4.9% over the past year, lagging behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) gains of 2.8% and the S&P 500 Index’s ($SPX) decline of 1.4% during the same time frame.

Despite reporting robust financial indicators, NVR’s stock fell 3.8% following the release of its fourth-quarter results on January 28. The company achieved a significant year-over-year growth of 16.5% in homebuilding revenues, totaling $2.8 billion and surpassing Street expectations by 3.3%. In addition, NVR experienced notable increases in mortgage banking fees and income. Furthermore, the company reported a 15.1% year-over-year rise in earnings to $139.93 per share, exceeding consensus estimates by 10.7%.

However, new orders for the quarter dropped 7.6% year-over-year to 4,794 units. The backlog of homes sold but not settled as of December 31 fell by 3% year-over-year to 9,953 units, and the cancellation rate jumped to 17% in Q4 2024, up from 13% in Q4 2023. These factors have raised concerns about investor confidence in NVR’s growth outlook for upcoming quarters.

Moreover, market analysts express caution regarding NVR’s future prospects. The consensus opinion on the stock is neutral, reflected in an overall “Hold” rating. Out of the seven analysts covering NVR stock, one rates it a “Strong Buy,” five recommend a “Hold,” and one suggests a “Strong Sell” rating. The average price target of $8,917.50 indicates a potential 20.3% increase from current price levels.

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

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.