MDC Holdings Misses on Revenues but Beats on EPS

MDC Holdings (NYSE: MDC  ) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), MDC Holdings missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.

Gross margins shrank, operating margins improved, net margins improved.

Revenue details
MDC Holdings chalked up revenue of $268.9 million. The seven analysts polled by S&P Capital IQ predicted a top line of $274.6 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $215.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The seven earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS were $0.22 for Q2 compared to -$0.60 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 16.0%, 20 basis points worse than the prior-year quarter. Operating margin was 1.4%, 1,070 basis points better than the prior-year quarter. Net margin was 4.0%, 1,700 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $313.4 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $0.66.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 478 members out of 632 rating the stock outperform, and 154 members rating it underperform. Among 217 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give MDC Holdings a green thumbs-up, and 65 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MDC Holdings is hold, with an average price target of $30.33.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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