NVR, Inc. (NYSE: NVR) on Friday reported net income for its third quarter ended September 30, 2019 of $223,787,000, or $56.11 per diluted share. Net income and diluted earnings per share for the third quarter ended September 30, 2019 increased 14% and 16%, respectively, when compared to 2018 third quarter net income of $195,816,000, or $48.28 per diluted share. Analysts were looking for a gain of $50.73 per share.

Consolidated revenues for the third quarter of 2019 totaled $1,911,264,000, a 3% increase from $1,852,407,000 in the third quarter of 2018.
New orders in the third quarter of 2019 increased by 11% to 4,766 units, when compared to 4,302 units in the third quarter of 2018. The average sales price of new orders in the third quarter of 2019 was $369,200, a decrease of 1% when compared with the third quarter of 2018. Settlements increased in the third quarter of 2019 to 5,124 units, which was 8% higher than the third quarter of 2018. The company's backlog of homes sold but not settled as of September 30, 2019 decreased on a unit basis by 6% to 9,172 units and decreased on a dollar basis by 7% to $3,402,933,000 when compared to September 30, 2018.
Home building revenues of $1,873,331,000 in the third quarter of 2019 increased 4% compared to the third quarter of 2018. Gross profit margin in the third quarter of 2019 increased to 19.0%, compared to 18.6% in the third quarter of 2018. Income before tax from the home building segment totaled $245,774,000 in the third quarter of 2019, an increase of 10% when compared to the third quarter of 2018.
Mortgage closed loan production in the third quarter of 2019 totaled $1,373,946,000, an increase of 10% when compared to the third quarter of 2018. Income before tax from the mortgage banking segment totaled $21,400,000 in the third quarter of 2019, a decrease of 16% when compared to $25,514,000 in the third quarter of 2018. The decrease in income before tax is primarily due to a 12% decrease in mortgage banking fees, resulting from the timing of loan sales and a decrease in the fair value measurement adjustment.
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-two metropolitan areas in fourteen states and Washington, D.C.
