Overview

• U.S. homebuilder's Q1 revenue fell 22% yr/yr, net income down 34%

• Diluted EPS for Q1 dropped 29% from prior year

• Company cites lower backlog as main reason for settlement decline

Outlook

• Company did not provide specific guidance or outlook for future periods in its press release

Result Drivers

• LOWER BACKLOG - Co said decrease in settlements was primarily due to a 15% lower backlog balance entering Q1

• PRICING PRESSURE AND LOT COSTS - Gross profit margin declined due to continued pricing pressure and higher lot costs

• MORTGAGE PRODUCTION DROP - Mortgage closed loan production fell 27% yr/yr, contributing to lower mortgage banking segment income

Company press release: ID:nPn1nGqfka

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Homebuilding Revenues		$1.83 bln
Q1 EPS		$67.76
Q1 Net Income		$198.36 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "hold"

• Wall Street's median 12-month price target for NVR Inc is $8,100.00, about 16.8% above its April 21 closing price of $6,933.50

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

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