M.D.C. Holdings Inc. Earnings: Streak of Four Straight Quarters of Shrinking Margins Broken

M.D.C. Holdings Inc. (NYSE:MDC) climbed to a profit in the first quarter and beat Wall Street’s expectations in the process. 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: What’s the Future of Microsoft’s Stock?

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

Results: Reported a profit of $2.3 million (4 cents per diluted share) in the quarter. M.D.C. Holdings Inc. had a net loss of $19.9 million or a loss 43 cents per share in the year-earlier quarter.

Revenue: Rose 13.9% to $186.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: M.D.C. Holdings Inc. beat the mean analyst estimate of a loss of 18 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 our first pretax profit since the 2006 third quarter. This achievement represents the significant progress we have made over the last several quarters in implementing our initiatives to streamline our business, improve our sales, reduce our overhead and cut our capital costs.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 39 cents in the fourth quarter of the last fiscal year and by 18 cents in the third quarter of the last fiscal year.

MDC’s profit in the latest quarter ends a three-quarter streak of losses. The company reported a net loss of $18.8 million in the fourth quarter of the last fiscal year, a loss of $31.7 million in the third quarter of the last fiscal year and a loss of $28 million in the second of the last fiscal year.

Looking Forward: Analysts seem more positive about the company’s results for the next quarter than three months ago. The average estimate for the second quarter has moved from a loss of 15 cents a share to a loss of 7 cents over the last ninety days. For the fiscal year, the average estimate has moved from a loss of 47 cents a share to a loss of 7 cents over the last ninety days.

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

Don’t Miss These Additional Hot Stories:

Why Are These Health Stocks Feeling Under the Weather?

What Do Americans Think About Gold?>>

Here’s How to Bet on a Baby Boom>>