M.D.C. Holdings Earnings: Profit Swings Up and Beats Forecast

M.D.C. Holdings Inc. (NYSE:MDC) reversed to a profit in the third quarter, beating Wall Street estimates. 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.

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

Results: Reported a profit of $20.1 million (41 cents per diluted share) in the quarter. M.D.C. Holdings Inc. had a net loss of $31.7 million or a loss 68 cents per share in the year-earlier quarter.

Revenue: Rose 58.5% to $335.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: M.D.C. Holdings Inc. beat the mean analyst estimate of 21 cents per share. It beat the average revenue estimate of $177.4 million.

Quoting Management: Larry A. Mizel, MDC’s Chairman and Chief Executive Officer, stated, “I am pleased to announce a third quarter profit of $0.41 per share, our third consecutive quarterly operating profit, with net income improving by more than $50 million over the prior year. Our favorable results were largely attributable to significantly improved operating profits from our homebuilding segment, which experienced top-line growth as well as operating margin expansion. In addition, the Company’s financial services segment produced considerably better results as the Company took advantage of favorable mortgage market conditions, including increased volume and margins for its mortgage loan products.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 22 cents in the first quarter, and by 39 cents in the fourth quarter of the last fiscal year.

Revenue has now increased for three quarters in a row. In the second quarter, revenue rose 19.8% to $258.3 million while the figure rose 9.7% in the first quarter from the year earlier.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 29 cents a share to 28 cents over the last sixty days. The average estimate for the fiscal year is now 75 cents per share, down from 78 cents sixty days ago.

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

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[8:42:31 PM] Wall St. Cheat Sheet: M.D.C. Holdings Earnings: Profit Swings Up and Beats Forecast