The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Homex Development missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Homex Development reported revenue of $461.2 million. The three analysts polled by S&P Capital IQ wanted to see a top line of $502.8 million on the same basis. GAAP reported sales were 6.1% lower than the prior-year quarter's $491.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.52. The two earnings estimates compiled by S&P Capital IQ predicted $1.15 per share on the same basis. GAAP EPS of $0.05 for Q4 were 50% lower than the prior-year quarter's $0.10 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 21.2%, 1,090 basis points worse than the prior-year quarter. Operating margin was 10.2%, 250 basis points worse than the prior-year quarter. Net margin was 3.9%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $510.3 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $2.15 billion. The average EPS estimate is $4.23.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 248 members out of 266 rating the stock outperform, and 18 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Homex Development a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Homex Development is outperform, with an average price target of $20.30.
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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.