NVR - NVR Q3 earnings mixed as rising homebuilding sales offset drop in mortgage banking

NVR ( NYSE: NVR ) third-quarter earnings came in mixed on Tuesday as income from its homebuilding rose swiftly from the year-ago period, but its relatively smaller mortgage banking business saw downward pressure given a decrease in secondary market gains.

The homebuilder's stock, meanwhile, jumped 6.4% in early afternoon trading in a broader risk-on session as market participants still see the possibility that the Federal Reserve will slow down its rate-hiking pace after the FOMC gathering next week. All homebuilders caught a bid intraday even as disinflationary forces continue to hit the housing market. Earlier, the S&P Corelogic Case-Shiller Home Price Index showed that home prices dropped much more than expected.

Turning to NVR's ( NVR ) Q3 results, EPS of $118.51 fell short of the average analyst estimate of $118.66 but climbed from $86.44 a year earlier.

Revenue of $2.74B, though, topped the $2.57B consensus and gained from $2.34B in Q3 2021.

Homebuilding income came in at $520.93M, up from $395.11M in the year-ago quarter. Still, in line with the broad housing market slowdown, new orders of 4,421 units fell 15% from a year ago. But the average sales price of new orders increased 3% to $453.4K.

The cancellation rate was 15% in Q3 vs. 9% in Q3 2021.

Mortgage banking income totaled $17.59M compared with $39.02M in Q3 of last year.

Earlier, NVR GAAP EPS of $118.51 misses by $0.15, revenue of $2.74B beats by $170M .

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