Avalonbay Communities Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Avalonbay Communities (NYSE:AVB) will unveil its latest earnings on Wednesday, July 25, 2012. AvalonBay Communities develops, acquires, and operates multifamily communities in barrier-to-entry markets in the United States.

Avalonbay Communities Earnings Preview Cheat Sheet

During the past three months, the average estimate has moved up from $1.34. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. Analysts are projecting profit to rise by 19.7% versus last year to $5.47.

Past Earnings Performance: Last quarter, the company topped expectations by 4 cents, coming in at net income of $1.28 per share versus a mean estimate of profit of $1.24 per share. This followed two straight quarters of missing estimates.

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A Look Back: In the first quarter, profit rose 90.4% to $57.8 million (60 cents a share) from $30.3 million (35 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.6% to $252 million from $236.3 million.

Stock Price Performance: From June 20, 2012 to July 19, 2012, the stock price rose $8.26 (5.9%), from $141.04 to $149.30. The stock price saw one of its best stretches over the last year between January 19, 2012 and January 27, 2012, when shares rose for seven straight days, increasing 6.6% (+$8.33) over that span. It saw one of its worst periods between July 29, 2011 and August 8, 2011 when shares fell for seven straight days, dropping 13.3% (-$17.84) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 5.1% in revenue from the year-earlier quarter to $257.3 million.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 81.8% in the third quarter of the last fiscal year and 1095.4% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11% in the second quarter of the last fiscal year, 17.7% in the third quarter of the last fiscal year and 4.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With eight analysts rating the stock as a buy, two rating it as a sell and six rating it as a hold, there are indications of a bullish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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