M.D.C. Holdings Fourth Quarter Earnings Sneak Peek

M.D.C. Holdings, Inc. (NYSE:MDC) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. M.D.C. Holdings 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 and title agency services.

M.D.C. Holdings, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 43 cents per share, a spike from net loss of 8 cents in the year-ago quarter. During the past three months, the average estimate has moved up from 28 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 43 cents during the last month. For the year, analysts are projecting profit of $1.11 per share, a spike from a loss of $1.27 last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 20 cents, reporting net income of 41 cents per share against a mean estimate of profit of 21 cents per share.

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A Look Back: In the third quarter, the company swung to a profit of $20.1 million (41 cents a share) from a loss of $31.7 million (68 cents) a year earlier, beating analyst estimates. Revenue rose 51.7% to $320.7 million from $211.4 million.

Here’s how M.D.C. Holdings traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

mdc

Wall St. Revenue Expectations: Analysts predict a rise of 47.9% in revenue from the year-earlier quarter to $365.8 million.

Analyst Ratings: There are mostly holds on the stock with seven of eight analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 9.7% in the first quarter and 19.8% in the second quarter before climbing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.51 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 7.11 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.1% to $257.2 million while assets decreased 2% to $1.67 billion.

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