Mon, Jun. 15, 9:44 AM
- Zigging higher while the rest of the market zags sharply lower are the homebuilders following this weekend's merger of Ryland Homes and Standard Pacific.
- While there have been a number of smaller deals over the past year, this one is more sizable, setting off hope of a broader - and necessary, according to some - consolidation in the fragmented sector.
- Lennar (LEN +1.9%), Toll Brothers (TOL +1.4%), M.D.C. Holdings (MDC +2.3%), M/I Homes (MHO -0.5%), NVR (NVR), D.R. Horton (DHI +1.5%), KB Home (KBH +0.7%), Beazer Homes (BZH +1.2%), PulteGroup (PHM +1.6%), Hovnanian (HOV flat)
- Previously: Industry eyes Ryland/Standard Pacific merger (June 15)
Tue, Apr. 21, 9:34 AM
- Q1 net income of $39.06M or $9.22 per share, up 64% and 79%, respectively from a year ago.
- New home orders of 3,926 units up 18%. ASP of $375.4K up 2%. Cancellation rate of 12% is flat.
- Settlements of 2,534 units up 15%. Backlogs of homes sold, but not settled of 6,867 units up 13%, up 16% on a dollar basis.
- Mortgage banking closed loan production of $638.6M up 35% Y/Y.
- Previously: NVR misses by $0.68, beats on revenue (April 21)
- NVR +1% in early trading.
Thu, Apr. 16, 11:06 AM
- Housing starts bounced just 2% to 926K in March following February's supposedly weather-related plunge. Expectations had been for a 1.05M starts in March. Gains in the northeast and midwest in March were offset by declines in the south and west.
- Toll Brothers (TOL -2.4%), Lennar (LEN -2.1%), Hovnanian (HOV -2.8%), PulteGroup (PHM -2%), Ryland (RYL -2.7%), D.R. Horton (DHI -2%), KB Home (KBH -1.9%), Standard Pacific (SPF -2.7%), NVR (NVR -1.3%).
- Previously: Lame rebound for housing starts (April 16)
- Previously: Declines in the south and west hold back housing starts (April 16)
Mon, Jan. 26, 10:10 AM
- Net income of $99.5M, or $23.24 per diluted share vs. $97.8M, or $21.15 per diluted share in the fourth quarter of 2013.
- New orders increased 3% Y/Y to 2,713 units vs. 2,631 units in the year ago quarter.
- The company's backlog of homes sold but not settled as of December 31, 2014 increased on a unit basis by 11% to 5,475 units, and increased on a dollar basis by 14% to $2.1B when compared to December 31, 2013.
- Mortgage closed loan production of $881.9M for the three months ended December 31, 2014 was 22% higher than the same period last year.
- Q4 results
Tue, Jan. 20, 9:43 AM
- Hovnanian (HOV -5%), M/I Homes (MHO -3.1%), and Taylor Morrison (TMHC -4.3%) are all cut at JMP Securities, with MHO and TMHC now Market Performs, and HOV now Underperform.
- Credit Suisse, meanwhile, also cuts Taylor Morrison. Alongside, the team downgrades Ryland Group (RYL -3.2%), Meritage Homes (MTH -3.4%), and PulteGroup (PHM -3.3%) to Underperform, noting margin declines (see KB Home and Lennar earnings) and a slowdown in Texas thanks to oil's plunge.
- There's one upgrade, and that's NVR (NVR), which is boosted to Neutral from Underperform at Credit Suisse.
- ETFs: ITB, XHB
- Previously: KB Home: "Work to be done" to meet goals; -12.6% (Jan. 13)
- Previously: Lennar leads homebuilders lower after earnings (Jan. 15)
Thu, Jan. 15, 11:31 AM
- The company earlier reported bottom-line results which beat estimates, but the top line slightly missed.
- FQ4 (ending Nov. 30) deliveries of 6,950 homes gained 23% from a year ago. New orders of 5,492 homes up 22%, up 24% in dollar terms. ASP of $329K vs. $307K a year ago. Incentives of 23.1K per home, or 6.6% of home sales revenue vs. $20.6K and 6.3% a year ago.
- Backlogs of 5,832 homes up 21%, up 22% in dollar terms.
- Gross margins of 25.6% fell 120 basis points from a year ago. Operating margin of 16% down 90 bps.
- Like KB Home earlier this week, Lennar (LEN -4%) warns of lower gross margins for fiscal 2015.
- ITB -2.9%, XHB -2.2%
- Toll Brothers (TOL -2.7%), Hovnanian (HOV -5.3%), D.R. Horton (DHI -4.9%), Ryland (RYL -4.7%), KB Home (KBH -5.5%), Pulte (PHM -4.3%) M.D.C. Holdings (MDC -5.9%), NVR (NVR -2.5%), Standard Pacific (SPF -3.2%)
- Previously: Lennar beats by $0.11, misses on revenue (Jan. 15)
Sep. 3, 2014, 10:16 AM
- The homebuilders are lower in early action following Toll Brothers beating earnings estimates, but expressing caution on pricing power, and cutting guidance for full-year home deliveries.
- ITB -0.8%, XHB -0.5%.
- Individual names: Hovnanian (HOV -0.9%), Lennar (LEN -1.5%), KB Home (KBH -1.8%), PulteGroup (PHM -1.4%), D.R. Horton (DHI -1.1%), Ryland (RYL -1.5%), NVR (NVR -1.1%), Standard Pacific (SPF -1.1%).
Apr. 24, 2014, 1:21 PM
- The iShares DJ U.S. Home Construction ETF (ITB +2.7%) gains as earnings roll in from D.R. Horton, PulteGroup, Ryland, and M/I Homes. While PulteGroup saw slowdowns in closings and new orders, but offsetting increases in prices, D.R. Horton reported sales, new orders, and prices all on the rise. DHI is ahead 8%, Pulte 3%, Ryland (RYL +2.2%), M/I Homes (MHO +5.9%).
- The SPDR S&P Homebuilders ETF (XHB +1.2%) is more of a homebuilding supply play.
- Other builders: NVR (NVR +3.4%), Lennar (LEN +3.5%) Standard Pacific (SPF +2.8%), M.D.C. Holdings (MDC +3.2%), Hovnanian (HOV +2.5%), Toll Bros (TOL +4.2%).
Mar. 5, 2014, 10:46 AM
- A check of the homebuilders following Hovnanian's big earnings miss and slowdown in closings (HOV now down 6.6%): NVR (NVR -1.5%), D.R. Horton (DHI -1.1%), KB Home (KBH -1.8%), Pulte (PHM -0.8%), Ryland (RYL -1.5%), Toll Bros. (TOL -0.3%), Lennar (LEN -1%).
- So what's the SPDR Homebuilders ETF (XHB +0.1%) doing in the green? The ETF has a heavy weighting to those tangential to the homebuilding industry - retail home improvement, building suppliers. More of a pure-play homebuilder fund is the iShares U.S. Home Construction ETF (ITB -0.8%).
Jan. 31, 2014, 11:49 AM
- The homebuilders continue a big move higher this week as the sector reports better-than-expected results from Q4, and now has the tailwind of lower rates behind it. Off four basis points to 2.66% today, the 10-year Treasury yield has tumbled about 35 basis points in January.
- A couple of upgrades has Jefferson Research raising D.R. Horton (DHI +3.5%) to a Buy and RayJay upping Pulte Group (PHM +4.5%) to Outperform.
- ETFs; XHB +1.4%, ITB +2.3%
- Toll Brothers (TOL +3%), NVR (NVR +3.6%), William Lyons (WLH +1.1%), Hovnanian (HOV +2.2%), Lennar (LEN +3.4%)
- The New Home Company (NWHM) is up 10% from last night's IPO price of $11, but the pricing range had been expected at $15-$17 per share.
Jan. 28, 2014, 10:15 AM
- The homebuilders have their tails in their air following D.R. Horton's big earnings results which showed reports about the end of the housing recovery may be premature (DHI +8.5%). The company reported average sales price gains of 10%, orders by value up 14%, and the value of properties under contract up 20%.
- "Our weekly sales pace has accelerated in January," says Chairman Don Horton.
- XHB +1.6%, ITB +3%
- Toll Brothers (TOL +3.2%), Lennar (LEN +4.3%), KB Home (KBH +3.8%), Hovnanian (HOV +3.3%), Ryland (RYL +3.2%), Standard Pacific (SPF +3.2%), Comstock (CHCI +3.9%), Pulte (PHM +2.7%), NVR (NVR +1.4%), M.D.C. Holdings (MDC +3.6%), Taylor Morrison (TMHC +4.2%)
Nov. 14, 2013, 5:57 PM
- Intrexon (XON) +4.8% AH after David Einhorn's Greenlight Capital reveals it opened a ~2.1M-share position in the biotech company that went public in August. (13F)
- Greenlight also started positions in NVR and Tempur Sealy (TPX), and added large stakes in WPX Energy (WPX) and Spirit AeroSystems (SPR); it closed positions on Oaktree Capital (OAK), State Bank Financial (STBZ) and Capital Bank Financial (CBF), while selling 20% of its shares in Rite Aid (RAD).
- Its biggest positions are still in Apple (AAPL), 21.1% of the portfolio; GM, 11.3%; and Marvell Technology (MRVL), 9.4%.
Aug. 19, 2013, 12:13 PM
- Off more than 20% since its May high, the iShares U.S. Home Construction ETF (ITB -1.6%) is officially in a bear market, notes Ryan Detrick. The previous 3 instances the ETF fell 20%, it declined another 7.7% in the following month.
- Know your ETF: The S&P Homebuilders ETF (XHB -0.8%) has strongly outperformed the ITB during this 3-month slump.
- While ITB's main holdings are concentrated in actual homebuilders like LEN, PHM, DHI, TOL, and NVR, top holdings in the XHB are supply companies like Lumber Liquidators, Lennox, Lowe's/Home Depot, and A.O Smith - a homebuilder can't be found in its top 10 names.
- Other related ETF: PKB.
Apr. 22, 2013, 12:11 PMHomebuilders slip today on weaker than anticipated earnings out of NVR and a miss on Existing Home Sales numbers for March: [(XHB -0.6%, [HOV]] -1.6%, MTH -0.6%, RYL -1.3%, TOL -1.4%, TPH -0.4%, DHI -0.2%, KBH -0.2%, LEN -1.2%, SPF -1%. Home improvement superstore operators also feel the pinch: (HD -0.4% and (LOW -1.2%. | Apr. 22, 2013, 12:11 PM | 2 Comments
Apr. 22, 2013, 11:55 AMNVR (NVR -8.1%- gets hammered today as its Q1 misses on all fronts. Net earnings soared 28% Y/Y however, as the builder reported improved sales and a slight uptick in margins. New orders improved 11%, while closings increased 18%. Average new order prices rose 9.5%, and average closing prices increased 8.5%. The cancellation rate was up at 13.2% from 10.3% a year earlier but down from 15.3% in Q4. | Apr. 22, 2013, 11:55 AM | Comment!
Jul. 23, 2012, 1:59 PMHomebuilders buck today's downtrend as Goldman upgrades the homebuilder sector to Attractive and raises its ratings for MDC +5.6%, KBH +2.1% and RYL +4% while cutting NVR -1.8% to Sell. The firm thinks "investors should take advantage of the likely volatility in the space given U.S. homebuilders' strong correlation with the still depressed levels of new home sales." | Jul. 23, 2012, 1:59 PM | 1 Comment
NVR vs. ETF Alternatives
NVR Inc is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. The Company through its subsidiaries also operates in mortgage banking and title services business.
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