NVR - NVR stock drifts down after Q2 reflects falling new orders higher cancellation rate

• NVR ( NYSE: NVR ) shares are sliding 1.9% in early Tuesday afternoon trading after the homebuilder's Q2 earnings missed Wall Street expectations, driven by a Y/Y slump in new orders as well as a higher cancellation rate.
• Q2 adjusted EPS of $123.65 fell short of the average analyst estimate of $126.82, but climbed from $82.45 in the year-ago period.
• Meanwhile, revenue of $2.61B topped the consensus of $2.56B and rose from $2.2B in Q2 of last year.
• Homebuilding income came in at $544.95M at June 30, up from $378.3M at June 30, 2021.
• Mortgage banking income, though, slid to $29.1M in Q2 from $39.2M in Q2 a year ago.
• Cancellation rate was 14% in Q2 vs. 8% in Q2 2021.
• Net new orders for Q2 of 4,663 decreased from 5,521 in Q2 2021. The average sales price of new orders rose 7% to $471.6K during the second quarter.
• Backlog of homes sold but not settled fell to 12,286 in Q2 from 12,627 in Q2 2021.
• Previously, (July 21) mortgage rates edged higher ahead of Fed decision .

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