NVR beats quarterly profit expectations on higher home prices

(Reuters) – Homebuilder and mortgage banking company NVR Inc beat analysts’ expectations for first-quarter profit on Tuesday, helped by higher home prices.

U.S. home prices have remained elevated as a shortage of homebuilding supplies limited the availability of new homes, helping counter lower demand from a jump in mortgage rates following the Federal Reserve’s aggressive monetary policy.

Virginia-based NVR posted earnings of $99.89 per diluted share for the three months ended March 31, beating analysts’ average estimate of $88.96, according to Refinitiv data.

New orders declined 1% to 5,888 units.

Revenue fell 8.3% to $2.13 billion. Analysts on average estimated $2.24 billion.

Higher home prices also helped peer PulteGroup Inc to beat Wall Street estimates for first-quarter profit and revenue.

(Reporting by Anandita Mehrotra in Bengaluru; Editing by Shilpi Majumdar)