MDC Holdings Earnings: Here’s Why Investors are Excited Now

MDC Holdings Inc. (NYSE:MDC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.08%.

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MDC Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1025% to $0.45 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Rose 78.1% to $331.75 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MDC Holdings Inc. reported adjusted EPS income of $0.45 per share. By that measure, the company beat the mean analyst estimate of $0.25. It beat the average revenue estimate of $310.62 million.

Quoting Management: Larry A. Mizel, MDC’s Chairman and Chief Executive Officer, stated, “I am pleased to announce a first quarter profit of $0.45 per diluted share, our fifth consecutive quarterly operating profit, with net income improving by $20.3 million over the prior year. Our favorable results were mostly attributable to significantly improved operating profits from our homebuilding segment, which continued to benefit from strong execution by our management team amidst improving market conditions, leading to increased volume and margin.”

Key Stats (on next page)…

Revenue decreased 15.13% from $390.87 million in the previous quarter. EPS decreased 23.73% from $0.59 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.35 to a profit $0.37. For the current year, the average estimate has moved up from a profit of $1.52 to a profit of $1.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]