NVR, Inc. (NYSE: NVR), Reston, Va., on Wednesday reported net income for its fourth quarter ended December 31, 2016 of $150,891,000, or $37.80 per diluted share, up 13% and 18%, respectively, from the 2015 fourth quarter. The results beat analyst expectations of a profit of $33.81 per share.
Revenue was up for the quarter totaled $1,752,766,000, a 13% increase from the comparable 2015 quarter. For the year ended December 31, 2016, revenue was $5,822,544,000, 13% higher than the $5,159,008,000 reported for 2015. Net income for the year ended December 31, 2016 was $425,262,000, an increase of 11% when compared to the year ended December 31, 2015. Diluted earnings per share for the year ended December 31, 2016 was $103.61, an increase of 15% from $89.99 per diluted share for 2015.
New orders in the fourth quarter of 2016 increased 18% to 3,645 units, when compared to 3,100 units in the fourth quarter of 2015. The average sales price of new orders in the fourth quarter of 2016 was $395,200, an increase of 3% when compared with the fourth quarter of 2015. The cancellation rate in the fourth quarter of 2016 was 17%, compared with 16% in the fourth quarter of 2015. Settlements increased in the fourth quarter of 2016 to 4,419 units, 10% higher than the fourth quarter of 2015. The Company’s backlog of homes sold but not settled as of December 31, 2016 increased on a unit basis by 11% to 6,884 units and increased on a dollar basis by 14% to $2,704,277,000 when compared to December 31, 2015.
Home building revenue in the fourth quarter of 2016 totaled $1,718,527,000, 12% higher than the year earlier period. Gross profit margin in the fourth quarter of 2016 was 17.8%, compared to 18.9% in the fourth quarter of 2015.
New orders for the year ended December 31, 2016 increased 11% to 15,583 units, when compared to 14,080 units in 2015. Home settlements increased 12% year over year to 14,928 units in 2016 from 13,326 units in 2015.
Home building revenues for the year ended December 31, 2016 totaled $5,709,223,000, which is 13% higher than 2015. Gross profit margin for the year ended December 31, 2016 was 17.5%, compared to 18.7% in 2015. Income before tax for the home building segment for the year ended December 31, 2016 was $601,102,000, an 8% increase when compared to 2015.
Mortgage closed loan production in the fourth quarter of 2016 totaled $1,201,164,000, an increase of 15% when compared to the fourth quarter of 2015. Income before tax from the mortgage banking segment for the fourth quarter of 2016 was $20,399,000, compared to $14,546,000 for the fourth quarter of 2015.
Mortgage closed loan production for the year ended December 31, 2016 increased 13% to $3,952,575,000. Income before tax from the mortgage banking segment for the year ended December 31, 2016 increased to $60,595,000 from $47,883,000 in 2015.
