M.D.C. Holdings Inc. Earnings Cheat Sheet: Loss Widens, Falls Below Estimates

M.D.C. Holdings Inc. (NYSE:MDC) reported its results for the third quarter. 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.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

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

Results: Loss widened to $31.7 million (68 cents per diluted share) from $10.2 million (loss of 22 cents per share) in the same quarter a year earlier.

Revenue: Fell 6.3% to $211.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MDC fell short of the mean analyst estimate of a loss of 50 cents per share. It fell short of the average revenue estimate of $273.8 million.

Quoting Management: Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “Given increased uncertainty surrounding employment levels and consumer confidence, our goal is to return to profitability without relying on an improvement in homebuilding market conditions. Prior to the third quarter, we focused primarily on increasing our community count, giving us the opportunity to improve our market share and increase revenue. However, as our economy continues to display considerable weakness, it is difficult to justify a significant number of additional land acquisitions in the near-term, and therefore we are now focusing on other strategies to drive profitability.”

Key Stats:

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 3 cents with a loss of 36 cents versus a mean estimate of a loss of 33 cents per share.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 33.9% to $215.7 million from the year earlier quarter.

Looking Forward: The average estimate for the fourth quarter is down from a loss of 14 cents per share ninety days ago to a loss of 24 cents, indicating that analysts are increasingly pessimistic about the company’s next quarter performance. The average estimate for the fiscal year has reached a loss of $1.76 per share, down from a loss of $1.11 ninety days ago.

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).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

More from The Cheat Sheet