Avalonbay Communities Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Avalonbay Communities (NYSE:AVB) will unveil its latest earnings tomorrow, Wednesday, January 30, 2013. AvalonBay Communities develops, acquires, and operates multifamily communities in barrier-to-entry markets in the United States.

Avalonbay Communities Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.40 per share, a rise of 17.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.44. Between one and three months ago, the average estimate moved down. It also has dropped from $1.41 during the last month. For the year, analysts are projecting net income of $5.45 per share, a rise of 19.3% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported profit of $1.44 per share against a mean estimate of net income of $1.40 per share. In the second quarter, it missed forecasts by one cent.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the third quarter, profit rose 93.7% to $86.8 million (89 cents a share) from $44.8 million (49 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.5% to $290.1 million from $267.4 million.

Here’s how Avalonbay Communities traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: On average, analysts predict $275 million in revenue this quarter, a rise of 14.9% from the year-ago quarter. Analysts are forecasting total revenue of $1.05 billion for the year, a rise of 8.4% from last year’s revenue of $968.7 million.

Analyst Ratings: With seven analysts rating the stock as a buy, one rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 90.4% in the first quarter and more than threefold in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.5% in the fourth quarter of the last fiscal year, 6.6% in the first quarter and 5.9% in the second quarter before increasing again in the third quarter.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)