AvalonBay Communities, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component AvalonBay Communities, Inc. (NYSE:AVB) will unveil its latest earnings on Wednesday, July 27, 2011. AvalonBay Communities, Inc. develops, acquires, and operates multifamily communities in barrier-to-entry markets in the United States.

AvalonBay Communities, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.12 per share, a rise of 7.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.14. Between one and three months ago, the average estimate moved down, but has risen from $1.11 during the last month. For the year, analysts are projecting profit of $4.77 per share, a rise of 19.2% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of $1.08 per share versus a mean estimate of $1.05. Two quarters ago, it reported profit of $1.01 per share.

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Wall St. Revenue Expectations: On average, analysts predict $241.9 million in revenue this quarter, a rise of 10.6% from the year ago quarter. Analysts are forecasting total revenue of $982.1 million for the year, a rise of 10.6% from last year’s revenue of $888.2 million.

Analyst Ratings: Analysts are bullish on AvalonBay Communities as 10 analysts rate it as a buy, two rate it as a sell and 10 rate it as a hold.

Key Stats:

The company has now seen net income fall in each of the last three quarters. In first quarter, net income fell 58.2% from the year earlier, while the figure fell 16.6% in the fourth quarter of the last fiscal year and 57.6% in the third quarter of the last fiscal year.

Revenue has now gone up for three straight quarters. In first quarter, revenue rose 9.5% to $236.3 million while the figure rose 18.7% in the fourth quarter of the last fiscal year from the year earlier and 2.1% in the third quarter of the last fiscal year.

Competitors to Watch: UDR, Inc. (NYSE:UDR), Equity Residential (NYSE:EQR), Apartment Investment and Management Co. (NYSE:AIV), Essex Property Trust, Inc. (NYSE:ESS), Camden Property Trust (NYSE:CPT), Mid-America Apartment (NYSE:MAA), Post Properties, Inc. (NYSE:PPS), Colonial Properties Trust (NYSE:CLP), BRE Properties, Inc. (NYSE:BRE), and Home Properties, Inc. (NYSE:HME).

Stock Price Performance: During April 26, 2011 to July 21, 2011, the stock price had risen $14.07 (11.3%) from $124.96 to $139.03. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 8.6% (+$10.93) over that span. It saw one of its worst periods between October 20, 2010 and October 28, 2010 when shares fell for seven-straight days, falling 6.1% (-$6.71) over that span. Shares are up $28.11 (+25.3%) year to date.

(Source: Xignite Financials)

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