Avalonbay Communities Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Avalonbay Communities (NYSE:AVB) will unveil its latest earnings on Wednesday, October 24, 2012. 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 19.7% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $5.46 per share, a rise of 19.5% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported profit of $1.34 per share against a mean estimate of $1.35. Two quarters ago, it beat expectations by 4 cents with net income of $1.28.

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A Look Back: In the second quarter, profit rose more than threefold to $156.9 million ($1.63 a share) from $43.4 million (49 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 5.9% to $259.7 million from $245.3 million.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price fell $9.16 (-6.3%), from $145.32 to $136.16. The stock price saw one of its best stretches over the last year between January 19, 2012 and January 27, 2012, when shares rose for seven straight days, increasing 6.6% (+$8.33) over that span. It saw one of its worst periods between July 17, 2012 and July 26, 2012 when shares fell for eight straight days, dropping 4.3% (-$6.42) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 5.4% in revenue from the year-earlier quarter to $264.6 million.

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 1095.4% in the fourth quarter of the last fiscal year and 90.4% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 17.7% in the third quarter of the last fiscal year, 4.5% in the fourth quarter of the last fiscal year and 6.6% in the first quarter before increasing again in the second quarter.

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

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

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