NVR’s Community Count Grows, but Gross Margin Pressures Temper Our Profitability Expectations
We think no-moat homebuilder NVR had a solid third quarter, but the company did miss consensus sales and earnings estimates by 4% and 5%, respectively, and NVR shares closed down 2.6% on Oct. 20, underperforming the S&P Homebuilders Index, which closed down 0.7%. Homebuilding sales increased 10% from the year-ago quarter as home deliveries increased 9% and average selling price, or ASP, increased 1%. The year-over-year change in ASP on delivered homes declined in both the first and second qu...NVR is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are constructed on a pre-sold basis. The company conducts its homebuilding activities directly. The company's homebuilding operations construct and sell single-family detached homes, townhomes and condominium buildings under three trade names: Ryan Homes, which is marketed primarily to first-time and first-time move-up buyers; and NVHomes and Heartland Homes, which are marketed primarily to move-up and luxury buyers. The company's mortgage banking operations also include separate subsidiaries that broker title insurance and perform title searches in connection with mortgage loan closings.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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