Why Is NVR (NVR) Up 2.1% Since Last Earnings Report?

It has been about a month since the last earnings report for NVR (NVR). Shares have added about 2.1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is NVR due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for NVR, Inc. before we dive into how investors and analysts have reacted as of late.

NVR's Q2 Earnings & Homebuilding Revenues Top, New Orders Down Y/Y

NVR reported better-than-expected second-quarter 2025 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. However, on a year-over-year basis, earnings declined while Homebuilding revenues remained flat.

The quarter’s results reflect the continued impact of the ongoing affordability challenges faced by homebuyers amid macro risks and inflationary pressures. The Homebuilding segment faced a pullback with settlements declining year over year, partially offset by a higher average selling price (ASP). Also, the backlog units and value both weakened due to the lingering uncertainties in the housing market.

Moreover, the bottom line tumbled year over year due to higher lot costs, unfavorable pricing pressures from affordability issues and contract land deposit impairments.

Inside NVR’s Headlines

The company reported earnings of $108.54 per share, topping the Zacks Consensus Estimate of $104.89 by 3.5%. Contrarily, the reported figure decreased 10.1% from the prior-year quarter’s earnings of $120.69 per share.

Homebuilding revenues of $2.55 billion also surpassed the consensus mark of $2.4 billion by 6.1%, but were flat year over year. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.60 billion, marginally down 0.4% on a year-over-year basis.

Segment Details

Homebuilding: The segment’s revenues were at par with the year-ago quarter. Settlements in the quarter were down 3% year over year to 5,475 units. The ASP for settlements was up 3% year over year to $465,400. The gross margin contracted 210 basis points year over year to 21.5%.

New orders decreased 11% from the prior-year quarter’s level to 5,379 units. However, the ASP of new orders remained flat year over year at $458,100. The cancellation rate increased to 17%, up from 13% a year ago. On a unit basis, backlog at the end of June 30, 2025, decreased 13% to 10,069 homes and $4.75 billion on a dollar basis, from the prior-year quarter’s figure.

The average active communities were 426 in the quarter, down from 433 reported a year ago.

Mortgage Banking: Mortgage banking fees tumbled 21.7% year over year to $50.5 million. Mortgage closed loan production totaled $1.56 billion, up 2% year over year. The capture rate was 87% in the second quarter, up from 86% in the year-ago quarter.

NVR’s Financials

As of June 30, 2025, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $1.73 billion and $39.3 million, respectively, compared with $2.56 billion and $49.6 million at 2024-end.

During the first six months of 2025, NVR repurchased 142,954 shares for $1.05 billion. At the end of June 30, 2025, the company had 2,883,215 shares outstanding.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates revision.

The consensus estimate has shifted 11.6% due to these changes.

VGM Scores

At this time, NVR has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

NVR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

NVR is part of the Zacks Building Products - Home Builders industry. Over the past month, PulteGroup (PHM), a stock from the same industry, has gained 8.1%. The company reported its results for the quarter ended June 2025 more than a month ago.

PulteGroup reported revenues of $4.4 billion in the last reported quarter, representing a year-over-year change of -4.3%. EPS of $3.03 for the same period compares with $3.58 a year ago.

PulteGroup is expected to post earnings of $2.86 per share for the current quarter, representing a year-over-year change of -14.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.

PulteGroup has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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