NVR misses earnings

[HenryTo]

Never mind that MDC beat earnings by 6 cents - the bears still have their grasp on the homebuilders:
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NVR's shares skid after quarterly report
By John Spence, MarketWatch
Last Update: 10:58 AM ET Oct. 18, 2005

NEW YORK (MarketWatch) -- NVR Inc. reported Tuesday third-quarter profit growth of 28%, but shares of the company lost as much as 8%.

NVR said third-quarter profit rose to $189.4 million, or $24.33 a share, from $147.7 million, or $19.04 a share, last year. Consolidated revenue advanced to $1.37 billion from $1.17 billion.

Analysts polled by Thomson First Call had been looking for earnings, on average, of $25.90 a share and revenue of $1.45 billion, pressuring shares of the Reston, Va.-based homebuilding and mortgage banking company.

NVR also said new-home orders rose 7% to 2,897 units for the third quarter compared to last year, with the company adding that orders decreased in the Washington, D.C., area on "generally weaker market conditions."

As of Sept. 30, the company's backlog was 8,875 homes with an average price of $431,700, up from 7,775 units priced at $378,100 each the prior year.

For 2005, the company said it has increased its outlook to 30% earnings growth, on top of last year's profit of $523.2 million.

Shares of NVR were last down 8.6% at $693 in late morning dealings Tuesday.

[Goodfella]

Could this this be bearish. Oversupply?


U.S. Sept. housing starts rise 3.4% to 2.108 million pace
WASHINGTON (AFX) - Construction of new homes in the United States
reaccelerated in September, climbing 3.4% to seasonally adjusted annualized rate
of 2.108 million, the Commerce Department estimated Tuesday. Housing starts were
at the highest level since February, and exceeded the 1.970 million annual pace
expected by economists surveyed by MarketWatch. Building permits issued by local
jurisdictions increased 2.4% in September to a seasonally adjusted annual rate
of 2.189 million, the highest in 32 years. Starts of single-family homes rose
2.6% to 1.747 million, while single-family building permits increased 4.4% to a
record 1.749 million.

This story was supplied by MarketWatch. For further information see
www.marketwatch.com.