D.R. Horton First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component D.R. Horton, Inc. (NYSE:DHI) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. D.R. Horton is a homebuilding company that constructs and sells homes in the United States and provides mortgage financing and title agency services to homebuyers.

D.R. Horton, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 14 cents per share, a rise of 55.6% 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 17 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 14 cents during the last month. For the year, analysts are projecting net income of 88 cents per share, a rise of 12.8% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at profit of 30 cents a share versus the estimate of net income of 28 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose more than twofold to $100.1 million (30 cents a share) from $35.8 million (12 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 21.7% to $1.34 billion from $1.1 billion.

Here’s how D.R. Horton traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

dhi

Wall St. Revenue Expectations: On average, analysts predict $1.1 billion in revenue this quarter, a rise of 24.4% from the year-ago quarter. Analysts are forecasting total revenue of $5.51 billion for the year, a rise of 30% from last year’s revenue of $4.24 billion.

Stock Price Performance: Between November 23, 2012 and January 23, 2013, the stock price had risen $2.29 (11.7%), from $19.53 to $21.82. The stock price saw one of its best stretches over the last year between November 14, 2012 and November 23, 2012, when shares rose for seven straight days, increasing 6.2% (+$1.14) over that span. It saw one of its worst periods between November 5, 2012 and November 14, 2012 when shares fell for eight straight days, dropping 15.3% (-$3.32) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 19.9% over the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.81 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.04 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 14.8% to $3.47 billion while assets rose 2% to $6.28 billion.

Analyst Ratings: With seven analysts rating the stock as a buy, two rating it as a sell and eight 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)