NVR's homebuilding business segment grew year-over-year but its mortgage banking unit generated a 10.3% decline in profits. The Reston, Va.-based company booked net profits of $58.7 million, or $9.96 per share, on revenue of $811 million, compared with year-earlier earnings of $60.6 million, or $9.61 per share, on revenue of $745.8 million. Top- and bottom-line results topped Wall Street's consensus for earnings of $44.9 million, or $7.38 per share, on revenue of $699.9 million. NVR's backlog of homes sold but not settled dropped 17% year-over-year to 2,916 units, and on a dollar basis by 11% to $958.3 million. NVR's homebuilder revenue grew 9% to $794.5 million and its mortgage closed loan product grew 10% to $597.9 million.
Ryland shares fell 2% to trade at $17.90. The Calabasa, Calif.-based homebuilder and mortgage finance firm said late Wednesday it booked a wider-than-expected net loss of $19.1 million, or 43 cents per share, compared with year-earlier profits of $39 million, or 88 cents per share. Revenue dropped 45.7% to $227.1 million. Analysts' consensus had been for Ryland to book a quarterly loss of $13.8 million, or 35 cents loss per share, on revenue of $234.4 million. "Not a fantastic quarter, but solid against a tough economic and housing backdrop in our view," noted Stifel's Widner. The analyst maintained a buy rating on NVR and $20 target price. Ryland's pretax charges, related to inventory and other valuation adjustments, write-offs and loan loss reserves, totaled $15.4 million, or 35 cents per share, in the quarter, much higher than Widner's $5 million impairment charge estimate.
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