NVR - NVR stock jumps after higher home prices help drive Q4 earnings beat

NVR ( NYSE: NVR ) shares climbed 4.6% in Tuesday afternoon trading after the homebuilder's Q4 earnings and revenue exceeded Wall Street consensus estimates as average settlement prices rose.

Overall, homebuilding stocks rose in Tuesday trading after peer homebuilder PulteGroup's ( PHM ) Q4 results also trounced analyst consensus estimates. iShares U.S. Home Construction ETF ( BATS: ITB ) gained 3.9% in Tuesday afternoon trading.

Q4 EPS of $133.44, topping the $99.38 consensus, climbed from $118.51 in the prior quarter and from $89.09 in Q4 2021.

Homebuilding revenue of $2.67B, exceeding the $2.48B consensus, declined from $2.74B in the prior quarter and rose from $2.18B in the year-ago period.

Settlements in Q4 were 4,153 units, down from 5,949 units in Q3 and from 5,100 units in the year-ago quarter.  Average settlement price was $464.0K vs. $460.5K in the prior quarter and $426.8K in the year-ago quarter.

Cancellation rate rose to 18% from 15% in Q3 and from 10%% in Q4 2021.

Backlog of homes sold but not settled as of Dec. 31, 2022 fell to 9,162 units, at a value of $4.33B, from 10,758 units, or $5.09B in the prior quarter and from 12,730 units in the year-ago quarter.

Mortgage closed loan production amounted to $1.52B in Q4 2022 vs. $1.66B in Q3 and $1.48B in Q4 2021.

Earlier, NVR ( NVR ) GAAP EPS of $133.44 beats by $34.08, revenue of $2.67B beats by $190M

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