Inside NVR, Inc.’s Upcoming Second Quarter Earnings Release

NVR, Inc. (AMEX:NVR) will unveil its latest earnings on Thursday, July 21, 2011. NVR Inc. 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 profit of $6.15 per share, a decline of 44.7% 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 $8.17. Between one and three months ago, the average estimate moved down, but it has been unchanged at $6.15 during the last month. For the year, analysts are projecting net income of $28.02 per share, a decline of 16.2% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of $2.52 per share versus a mean estimate of net income of $4.37 per share. In fourth quarter of the last fiscal year, the company beat estimates by $2.88.

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Wall St. Revenue Expectations: On average, analysts predict $679.8 million in revenue this quarter, a decline of 28.2% from the year ago quarter. Analysts are forecasting total revenue of $2.82 billion for the year, a decline of 5.4% from last year’s revenue of $2.98 billion.

Analyst Ratings: Analysts seem relatively indifferent about NVR with five of seven analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income fall in each of the last three quarters. In first quarter, net income fell 52.7% from the year earlier, while the figure fell 3.2% in the fourth quarter of the last fiscal year and 39.1% in the third quarter of the last fiscal year.

Revenue fell in the first quarter after seeing a rise the quarter before. Revenue dropped 12.9% to $516 million in the first quarter from the year earlier. In the fourth quarter of the last fiscal year, revenue rose 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), PulteGroup, Inc. (NYSE:PHM), Hovnanian Enterprises, Inc. (NYSE:HOV), and KB Home (NYSE:KBH).

Stock Price Performance: During April 19, 2011 to July 15, 2011, the stock price had fallen $59.53 (-7.7%) from $770.18 to $710.65. 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 up $19.63 (+2.8%) year to date.

(Source: Xignite Financials)

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