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 Friday, November 11, 2011. 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 15 cents per share, a swing from a loss of 3 cents in the year earlier quarter. During the past three months, the average estimate has moved up from 14 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 15 cents during the last month. For the year, analysts are projecting net income of 27 cents per share, a decline of 10% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported profit of 9 cents per share against a mean estimate of net income of 5 cents per share. In the second quarter, it missed forecasts by one cent.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 13.9% in revenue from the year-earlier quarter to $1.08 billion.

Analyst Ratings: Analysts seem relatively indifferent about D.R. Horton with eight of 15 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 43.2% to $28.7 million (9 cents a share) from $50.5 million (16 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 28.9% to $999.2 million from $1.41 billion.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 17.8% in the second quarter from the year earlier, dropped 30.4% in first quarter from the year-ago quarter and 7.8% in the fourth 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), Orleans Homebuilders (OHBIQ), and Meritage Homes Corporation (NYSE:MTH).

Stock Price Performance: During August 12, 2011 to November 7, 2011, the stock price had risen $2.16 (22.7%) from $9.52 to $11.68. 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 7.5% (+81 cents) over that span. It saw one of its worst periods between November 16, 2010 and November 29, 2010 when shares fell for nine-straight days, falling 10.1% (-$1.10) over that span. Shares are down 13 cents (-1.1%) year to date.

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

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