Homebuilder NVR posts quarterly revenue below estimates on weak demand
30/01/2024 14:53
Jan 30 (Reuters) - U.S. homebuilder NVR Inc NVR.N
missed Wall Street estimates for fourth-quarter revenue on
Tuesday, as demand fell on the back of soaring mortgage rates.
With the popular 30-year fixed mortgage rates touching
nearly 7%, many prospective homebuyers have been pushed to the
sidelines of the U.S. housing market, especially as base home
prices also remain elevated due to a shortage of supply.
NVR said its home settlements in the quarter decreased 7% to
5,332 units, while the average settlement price fell 4%, a trend
reflected in peer PulteGroup's PHM.N quarterly results.
Reston, Virginia-based NVR reported revenue of $2.39 billion
for the quarter ended December, below the average analyst
estimate of $2.59 billion, according to LSEG data.
The U.S. builder, which operates in 15 states, reported net
income of $121.56 per share, compared with estimates of $121.50
per share.
(Reporting by Ananta Agarwal and Aishwarya Jain in Bengaluru)
((Ananta.agarwal@thomsonreuters.com;))