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.

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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:

avb

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.

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