Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at NVR (NYSE:NVR) and the best and worst performers in the home builders industry.
Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.
The 12 home builders stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.4%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.2% since the latest earnings results.
NVR (NYSE:NVR)
Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.
NVR reported revenues of $2.85 billion, up 17% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ backlog estimates.
The stock is down 12.4% since reporting and currently trades at $7,350.
Is now the time to buy NVR? Access our full analysis of the earnings results here, it’s free.
Best Q4: Champion Homes (NYSE:SKY)
Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America.
Champion Homes reported revenues of $644.9 million, up 15.3% year on year, outperforming analysts’ expectations by 9.2%. The business had an incredible quarter with an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ EPS estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $92.51.
Is now the time to buy Champion Homes? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Toll Brothers (NYSE:TOL)
Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE:TOL) is a luxury homebuilder across the United States.
Toll Brothers reported revenues of $1.86 billion, down 4.6% year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
As expected, the stock is down 12.5% since the results and currently trades at $106.81.
Read our full analysis of Toll Brothers’s results here.
TopBuild (NYSE:BLD)
Established in 2015 following a spinoff from Masco Corporation, TopBuild (NYSE:BLD) is a distributor and installer of insulation and other building products.
TopBuild reported revenues of $1.31 billion, up 2% year on year. This number met analysts’ expectations. Aside from that, it was a slower quarter as it produced full-year revenue guidance missing analysts’ expectations.
TopBuild had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $302.99.
Read our full, actionable report on TopBuild here, it’s free.
Lennar (NYSE:LEN)
One of the largest homebuilders in America, Lennar (NYSE:LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.
Lennar reported revenues of $9.95 billion, down 9.3% year on year. This print lagged analysts' expectations by 1.9%. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ adjusted operating income estimates.
Lennar had the slowest revenue growth among its peers. The stock is down 15.9% since reporting and currently trades at $118.69.
Read our full, actionable report on Lennar here, it’s free.
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