NVR Inc. Third Quarter Earnings Sneak Peek

NVR, Inc. (NYSE:NVR) will unveil its latest earnings on Thursday, October 18, 2012. 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 $10.10 per share, a rise of 26.6% 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 $10.95. Between one and three months ago, the average estimate moved down. It has risen from $9.95 during the last month. For the year, analysts are projecting profit of $33.19 per share, a rise of 44.2% from last year.

Past Earnings Performance: Last quarter, the company topped expectations by 22 cents, coming in at net income of $8.97 per share versus a mean estimate of profit of $8.75 per share. This followed two straight quarters of missing estimates.

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A Look Back: In the second quarter, profit rose 21.8% to $46.8 million ($8.97 a share) from $38.4 million ($6.48 a share) the year earlier, exceeding analyst expectations. Revenue rose 10.6% to $771.3 million from $697.4 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 20.2% in revenue from the year-earlier quarter to $837.7 million.

Stock Price Performance: Between July 19, 2012 and October 12, 2012, the stock price rose $120.15 (16.1%), from $744.85 to $865. The stock price saw one of its best stretches over the last year between May 18, 2012 and May 29, 2012, when shares rose for seven straight days, increasing 8.9% (+$68.49) over that span. It saw one of its worst periods between February 14, 2012 and February 24, 2012 when shares fell for eight straight days, dropping 6% (-$42.99) over that span.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 16.6% in the first quarter before climbing again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 2.1% for the last four quarters.

Analyst Ratings: There are mostly holds on the stock with five of seven analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.87 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 3.8 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 9.3% to $1.45 billion while liabilities rose by 7.5% to $376.1 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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