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.
Looking for alternatives to Desarrolladora Homex? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Desarrolladora Homex to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.