The 10-second takeaway
For the quarter ended March 31 (Q1), Desarrolladora Homex whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Desarrolladora Homex reported revenue of $270.5 million. The three analysts polled by S&P Capital IQ hoped for revenue of $384.1 million on the same basis. GAAP reported sales were 44% lower than the prior-year quarter's $483.1 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 $0.11. The two earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. Non-GAAP EPS of $0.11 for Q1 were 85% lower than the prior-year quarter's $0.72 per share. GAAP EPS of $0.02 for Q1 were 88% lower than the prior-year quarter's $0.17 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 20.8%, 390 basis points worse than the prior-year quarter. Operating margin was 6.1%, 880 basis points worse than the prior-year quarter. Net margin was 2.9%, 890 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $425.3 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $3.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 252 members out of 268 rating the stock outperform, and 16 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $16.75.
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