M.D.C. Holdings Earnings Cheat Sheet: Quarterly Net Home Orders Drops

M.D.C. Holdings, Inc.’s (NASDAQ:MDC) first quarter loss narrowed, beating estimates. M.D.C. Holdings, Inc.operates in the field of homebuilding and financial services. Its homebuilding operations consist of construction and sale of single-family detached homes and financial services includes mortgage loans, title agency services.

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M.D.C. Holdings Earnings Cheat Sheet for the First Quarter

Results: Loss narrowed to $19.9 million (loss of 43 cents/diluted share) from $20.9 million (loss of 45 cents/share) in the same quarter a year earlier.

Revenue: Rose 15.4% to $169.7 million YoY.

Actual vs. Wall St. Expectations: MDC beat the mean analyst estimate of a loss of 44 cents/share. Estimates ranged from a loss of 27 cents per share to a loss of 73 cents per share.

Quoting Management: Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “Difficult market conditions, coupled with the absence of the federal homebuyer tax credit, resulted in a reduction in net home orders during the three months ended March 31, 2011 compared with the same period during 2010. However, we have seen sequential improvement in home orders during each month in 2011 through April, consistent with seasonality.” Mizel continued, “Top-line growth is a key component of the strategy we are executing in an effort to return to profitability. We pursued that growth strategy by entering the Seattle market in April 2011 through the purchase of substantially all of the homebuilding assets of SDC Homes, which ranked as Seattle’s third largest builder. We have also dedicated substantial resources towards increasing market share in our current footprint, as shown by a 23% year-over-year increase in our active subdivision count at the end of the 2011 first quarter.”

Competitors to Watch: D.R. Horton, Inc. (NYSE:DHI), PulteGroup, Inc. (NYSE:PHM), Toll Brothers, Inc. (NYSE:TOL), KB Home (NYSE:KBH), The Ryland Group, Inc. (NYSE:RYL), Standard Pacific Corp. (NYSE:SPF), Hovnanian Enterprises, Inc. (NYSE:HOV), NVR, Inc. (NYSE:NVR), Beazer Homes USA, Inc. (NYSE:BZH), and M/I Homes, Inc. (NYSE:MHO)

Stock Performance: Shares of MDC are down over 2.5% to $26.74 per share from the previous close of $27.44.


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