The company's stock plummeted as several months worth of poor housing data, ratings company downgrades, and write-offs pressure share.
NVR announced its Q3 results, which exceeded analysts’ expectations. The company’ net income fell by 30 percent, mainly because of write-offs of land deposits, to $15.25 per share, compared to $19.63 per share last year. However, the analysts expected earnings of $11.97 per share only. The better than expected results were mainly due to reversal of some of its previously recorded stock-based compensation costs, and better margins. The company was able to reverse $31.5 million of already booked cost.
NVR Inc posted third quarter earnings per share of $15.26 ahead of Reuters Estimates of $11.97 per share. The third quarter revenue fell 17 percent to $1.29 billion while the Reuters estimate was $1,322.03 million. The third quarter was hurt by land deposit impairments of approximately $96.5 million. However, the third quarter new orders rose 12 percent to 2,660 units.