D.R. Horton Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component D.R. Horton, Inc. (NYSE:DHI) will unveil its latest earnings on Friday, January 27, 2012. 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 5 cents per share, a swing from a loss of 4 cents in the year earlier quarter. During the past three months, the average estimate has moved down from 7 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 5 cents during the last month. For the year, analysts are projecting net income of 45 cents per share, a rise of more than threefold from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of 14 cents per share against a mean estimate of 15 cents. Two quarters ago, it beat expectations by 4 cents with net income of 9 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 13.8% in revenue from the year-earlier quarter to $896.9 million.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, one rating it as a sell and six rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, the company swung to a profit of $35.8 million (12 cents a share) from a loss of $8.8 million (one cent) a year earlier, but missed analyst estimates. Revenue rose 15.8% to $1.1 billion from $948.5 million.

Key Stats:

A year-over-year revenue increase in the fourth quarter of the last fiscal year snapped a streak of three consecutive quarters of revenue declines. Revenue fell 28.9% in the third quarter of the last fiscal year, 17.8% in the second quarter of the last fiscal year and 30.4% in the first quarter of the last fiscal year.

Competitors to Watch: PulteGroup, Inc. (NYSE:PHM), KB Home (NYSE:KBH), Lennar Corporation (NYSE:LEN), Toll Brothers, Inc. (NYSE:TOL), The Ryland Group, Inc. (NYSE:RYL), NVR, Inc. (NYSE:NVR), M.D.C. Holdings, Inc. (NYSE:MDC), Standard Pacific Corp. (NYSE:SPF) and Meritage Homes Corporation (NYSE:MTH).

Stock Price Performance: During October 25, 2011 to January 23, 2012, the stock price had risen $2.83 (25.6%) from $11.06 to $13.89. The stock price saw one of its best stretches over the last year between June 15, 2011 and June 23, 2011 when shares rose for seven-straight days, rising 7.7% (+82 cents) over that span. It saw one of its worst periods between July 28, 2011 and August 8, 2011 when shares fell for eight-straight days, falling 19.6% (-$2.32) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com