The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Desarrolladora Homex whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share contracted to a loss. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Desarrolladora Homex logged revenue of $614.6 million. The six analysts polled by S&P Capital IQ expected a top line of $737.7 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $471.0 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 -$0.08. The three earnings estimates compiled by S&P Capital IQ predicted $1.47 per share. Non-GAAP EPS were -$0.08 for Q4 against $0.52 per share for the prior-year quarter. GAAP EPS were -$0.05 for Q4 against $0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.3%, much worse than the prior-year quarter. Operating margin was -2.3%, 920 basis points worse than the prior-year quarter. Net margin was -2.6%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $378.7 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $1.86 billion. The average EPS estimate is $1.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 248 members out of 264 rating the stock outperform, and 16 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Desarrolladora Homex a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Desarrolladora Homex is hold, with an average price target of $18.53.
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