Reston-based home builder and mortgage service company NVR Inc. continued to benefit from the region's strong housing market, reporting a 45 percent increase in its second-quarter earnings compared with the same period in 2004.
Profit for the quarter was $167.6 million ($21.42 a share), compared with $116 million ($14.82) for the second quarter of last year.
That beat the $18.30 per share expectation of analysts surveyed by Thomson Financial.
"NVR is the biggest player in Washington, D.C., by far," said Jim F. Wilson, a housing analyst for San Francisco-based JMP Securities. Wilson does not follow NVR, but he does track other housing companies in the nation.
NVR builds homes in the Washington area's suburbs, and the company's second-quarter earnings indicate "particular strength around the greater Washington, D.C., area," he said. Housing growth reflects job growth, he said.
NVR's revenue rose 28 percent, to $1.28 billion for the second quarter of 2005, compared with $1 billion for the same period of 2004. Orders for new homes also increased by 21 percent, to 4,829 units sold in the second quarter.
The company's order backlog increased 13 percent, to 9,554 units, with the dollar value of those homes totaling $4.02 billion, a 31 percent increase compared with the second quarter of 2004.
Higher home prices allowed the company to report higher profit margins despite the increase in prices for raw materials such as lumber, steel and drywall.
NVR sells homes in 11 states, including Maryland and Virginia. Its brand names include Ryan Homes, NVHomes, Fox Ridge Homes and Rymarc Homes, a Columbia, S.C.-based home builder NVR purchased in January. NVR's mortgage banking business includes NVR Mortgage and NVR Settlement Services.
Its stock rose $30.50, or 3.8 percent, to $834 per share.