NVR, Inc. (NYSE: NVR) on Thursday reported net income for its third quarter ended September 30, 2016 of $117,392,000, or $28.46 per diluted share. Analysts were expecting a profit of $28.89.
Net income and diluted earnings per share for the quarter increased by 1% and 5%, respectively, when compared to the third quarter of 2015. Consolidated revenues totaled $1,537,569,000, a 10% increase from $1,402,351,000 for the comparable 2015 quarter.
New orders increased 7% to 3,477 units, up from 3,258 units in the third quarter of 2015. The average sales price of new orders was $392,800, a 4% increase when compared with the average sales price of new orders in the third quarter of 2015. The cancellation rate in the third quarter of 2016 was 18%, compared to 17% in the third quarter of 2015.
Deliveries increased in the third quarter of 2016 to 3,922 units, 9% higher than the third quarter of 2015. The company’s backlog of homes sold but not settled as of September 30, 2016 increased on a unit basis by 7% to 7,658 units and increased on a dollar basis by 10% to $2,981,894,000 when compared to September 30, 2015.
Home building revenues for the three months ended September 30, 2016 totaled $1,507,451,000, 10% higher than the year earlier period. Gross profit margin decreased to 17.6% in the 2016 third quarter compared to 19.1% for the same period in 2015. Income before tax from the home building segment totaled $167,657,000 in the third quarter of 2016, a 1% decrease compared to the third quarter of 2015.
Mortgage closed loan production of $1,055,163,000 for the third quarter ended September 30, 2016 increased by 11% when compared to the third quarter ended September 30, 2015. Operating income for the mortgage banking operations during the third quarter of 2016 increased 8% to $17,346,000, compared to $16,122,000 reported for the third quarter of 2015.
For the nine months ended September 30, 2016, consolidated revenues were $4,069,778,000, 13% higher than the $3,603,733,000 reported for the same period of 2015. Net income for the nine months ended September 30, 2016 was $274,371,000, an increase of 10% when compared to the nine months ended September 30, 2015. Diluted earnings per share for the nine months ended September 30, 2016 was $66.24, an increase of 14% from $58.32 per diluted share for the comparable period of 2015.
