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

S&P 500 (NYSE:SPY) component D.R. Horton, Inc. (NYSE:DHI) will unveil its latest earnings on Monday, November 12, 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 net income of 28 cents per share, a rise of twofold 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 29 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 28 cents during the last month. For the year, analysts are projecting profit of $2.76 per share, a rise of 2200% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 23 cents per share versus a mean estimate of profit of 20 cents per share.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the third quarter, profit rose 2644.9% to $787.8 million ($2.22 a share) from $28.7 million (9 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 15.1% to $1.15 billion from $999.2 million.

Wall St. Revenue Expectations: Analysts predict a rise of 22.7% in revenue from the year-earlier quarter to $1.35 billion.

Stock Price Performance: Between August 13, 2012 and November 6, 2012, the stock price rose $3.19 (17.5%), from $18.24 to $21.43. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 2, 2012, when shares rose for six straight days, increasing 13.6% (+$2.22) over that span. It saw one of its worst periods between March 28, 2012 and April 5, 2012 when shares fell for seven straight days, dropping 11.7% (-$1.86) 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 18.5% over the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.04 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 1.92 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 22.9% to $6.16 billion while liabilities rose by 15.3% to $3.02 billion.

Analyst Ratings: With four analysts rating the stock as a buy, three rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Is AT&T’s Stock a Buy as iPhone Sales Soar?

Is the U.K. a Tech Company Tax Haven?

Should Apple’s CEO Be President of the United States?