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Reston, Virginia-based NVR, Inc. (NVR) operates as a homebuilder in the U.S. Valued at $21.6 billion by market cap, the company builds single-family detached homes, town homes, and condominium buildings under the Ryan Homes, NVHomes, and other trade names. NVR provides a number of mortgage related services to its homebuilding customers and to other customers through its mortgage banking operations. The homebuilding giant is expected to announce its fiscal second-quarter earnings for 2025 on Tuesday, Jul. 22.
Ahead of the event, analysts expect NVR to report a profit of $106.33 per share on a diluted basis, down 11.9% from $120.69 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while surpassing the forecast on another occasion.
For the full year, analysts expect NVR to report EPS of $408.23, down 19.4% from $506.69 in fiscal 2024. However, its EPS is expected to rise 8.1% year over year to $441.27 in fiscal 2026.
NVR stock has underperformed the S&P 500 Index’s ($SPX) 13.6% gains over the past 52 weeks, with shares down 2.7% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.2% gains over the same time frame.
NVR’s underperformance can be attributed to the slow housing market, which is being impacted by high mortgage rates and increasing home prices. This has resulted in a decrease in home sale volumes, leading even major builders like NVR to offer incentives to stimulate sales. As a result, their backlog and new orders have declined by 9% and 12% compared to the previous year.
On Apr. 22, NVR shares closed up marginally after reporting its Q1 results. Its EPS of $94.83 fell short of Wall Street expectations of $107.87. The company’s revenue stood at $2.4 billion, up 2.8% year over year.
Analysts’ consensus opinion on NVR stock is cautious, with a “Hold” rating overall. Out of seven analysts covering the stock, one advises a “Strong Buy” rating, five give a “Hold,” and one recommends a “Strong Sell.” NVR’s average analyst price target is $8325, indicating a potential upside of 12.7% from the current levels.
