RESTON, Va. (AP) -- Homebuilder NVR Inc. reported Monday that its fourth-quarter net income rose 61 percent as house prices climbed, beating analysts' projection.
The Reston, Va.-based company's shares rose $51.64, or 5.1 percent, to $1,060 in afternoon trading, even as shares of other homebuilders fell Monday. A Commerce Department report showed that U.S. sales of new homes fell in December for a second consecutive month. Despite the dip at the end of the year, sales for all of 2013 climbed to the highest level in five years on pent-up demand, an improving economy and lower interest rates.
NVR said fourth-quarter orders for new homes were nearly unchanged from the year before, but the average new order price rose 10 percent. The company said that the number of new loans issued rose, but higher overhead costs weighed on its mortgage banking division.
The company reported net income of $97.8 million, or $21.15 per share, for the October-December period. That's up from $60.6 million, or $11.98 per share, in the same quarter of 2012. Revenue increased 32 percent, to $1.24 billion from $943.7 million.
Analysts polled by FactSet were anticipating $16.08 per share on revenue of $1.11 billion.