The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Home Properties beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins increased, and net margins grew.
Home Properties notched revenue of $153.3 million. The 13 analysts polled by S&P Capital IQ hoped for sales of $147.2 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $133.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.29. The eight earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. GAAP EPS of $0.29 for Q4 were 61% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.7%, 170 basis points worse than the prior-year quarter. Operating margin was 32.0%, 50 basis points better than the prior-year quarter. Net margin was 9.1%, 400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $151.0 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $617.4 million. The average EPS estimate is $1.14.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 55 members out of 108 rating the stock outperform, and 53 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Home Properties a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Home Properties is outperform, with an average price target of $62.93.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.