D.R. Horton, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component D.R. Horton, Inc. (NYSE:DHI) will unveil its latest earnings on Thursday, July 28, 2011. D.R. Horton Incorporated is a homebuilding company which 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 6 cents per share, a decline of 62.5% 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 8 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 6 cents during the last month. For the year, analysts are projecting profit of 21 cents per share, a decline of 30% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the second quarter, it reported a loss of 6 cents per share versus a mean estimate of 5 cents. Two quarters ago, it reported net loss of 4 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $987.3 million in revenue this quarter, a decline of 30% from the year ago quarter. Analysts are forecasting total revenue of $3.61 billion for the year, a decline of 18% from last year’s revenue of $4.4 billion.

Analyst Ratings: Analysts seem relatively indifferent about D.R. Horton with 10 of 16 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has fallen for the past three quarters. In second quarter, revenue declined 17.8% to $751.1 million while the figure fell 30.4% in first quarter from the year earlier and 7.8% in the fourth quarter of the last fiscal year.

D.R. Horton’s profit in the latest quarter follows losses in the previous two quarters. The company reported a profit of $27.8 million in the second quarter, a loss of $20.4 million in the first quarter and a loss of $8.8 million 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) and Meritage Homes Corporation (NYSE:MTH).

Stock Price Performance: During July 18, 2011 to July 22, 2011, the stock price had risen 79 cents (7%) from $11.29 to $12.08. 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 7.6% (+82 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 up 23 cents (+1.9%) year to date.

(Source: Xignite Financials)

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