NVR, Inc. (NYSE: NVR) on Friday reported net income for its second quarter ended June 30, 2019 of $210,209,000, or $53.09 per diluted share, up 3% and 8%, respectively, from 2018 second quarter net income of $203,174,000, or $49.05 per diluted share. Analysts were looking for a gain of $45.60 per share.
Consolidated revenues for the second quarter of 2019 totaled $1,800,194,000, a 1% increase from $1,787,305,000 in the second quarter of 2018.
For the six months ended June 30, 2019, consolidated revenues were $3,487,205,000, a 5% increase from $3,316,719,000 reported for 2018. Net income for the six months ended June 30, 2019 was $398,615,000, an increase of 8% when compared to the six months ended June 30, 2018. Diluted earnings per share for the six months ended June 30, 2019 was $100.61, an increase of 14% from $88.31 per diluted share for 2018.
New orders in the second quarter of 2019 increased by 6% to 5,239 units, when compared to 4,964 units in the second quarter of 2018. The average sales price of new orders in the second quarter of 2019 was $358,600, a decrease of 5% when compared with the second quarter of 2018. The decrease in the average sales price is primarily due to a continued shift to smaller, lower priced products, as well as a shift to markets with lower average sales prices.
Settlements increased in the second quarter of 2019 to 4,720 units, 2% higher than the second quarter of 2018. The company's backlog of homes sold but not settled as of June 30, 2019 decreased on a unit basis by 6% to 9,530 units and decreased on a dollar basis by 9% to $3,516,505,000 when compared to June 30, 2018.
Home building revenues of $1,757,448,000 in the second quarter of 2019 were flat compared to the second quarter of 2018. Gross profit margin in the second quarter of 2019 decreased to 18.9%, compared to 19.1% in the second quarter of 2018. Income before tax from the home building segment totaled $219,650,000 in the second quarter of 2019, a decrease of 2% when compared to the second quarter of 2018.
Mortgage closed loan production in the second quarter of 2019 totaled $1,231,039,000, an increase of 1% when compared to the second quarter of 2018. Income before tax from the mortgage banking segment totaled $25,062,000 in the second quarter of 2019, an increase of 37% when compared to $18,320,000 in the second quarter of 2018. The increase in income before tax was primarily due to a 16% increase in mortgage banking fees, resulting from an increase in secondary marketing gains and the timing of loan sales.
