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The Gory Details of NVR's Earnings Miss

Tuesday - 4/23/2013, 2:00am  ET

NVR reported earnings on April 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), NVR missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.

Margins increased across the board.

Revenue details
NVR reported revenue of $770.3 million. The four analysts polled by S&P Capital IQ predicted sales of $844.6 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $603.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $6.84. The seven earnings estimates compiled by S&P Capital IQ predicted $8.03 per share. GAAP EPS of $6.84 for Q1 were 75% higher than the prior-year quarter's $3.90 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 18.0%, 90 basis points better than the prior-year quarter. Operating margin was 7.8%, 260 basis points better than the prior-year quarter. Net margin was 4.5%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.03 billion. On the bottom line, the average EPS estimate is $12.39.

Next year's average estimate for revenue is $3.98 billion. The average EPS estimate is $50.53.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 251 members out of 521 rating the stock outperform, and 270 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give NVR a green thumbs-up, and 91 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVR is hold, with an average price target of $915.20.

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This article was originally published as The Gory Details of NVR's Earnings Misson Fool.com

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