The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MDC Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Gross margins shrank, operating margins grew, net margins expanded.
MDC Holdings chalked up revenue of $335.1 million. The nine analysts polled by S&P Capital IQ predicted a top line of $338.9 million on the same basis. GAAP reported sales were 59% higher than the prior-year quarter's $211.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS were $0.41 for Q3 against -$0.68 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.6%, 140 basis points worse than the prior-year quarter. Operating margin was 4.2%, 1,140 basis points better than the prior-year quarter. Net margin was 6.0%, 2,100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $352.9 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.15 billion. The average EPS estimate is $0.80.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 479 members out of 635 rating the stock outperform, and 156 members rating it underperform. Among 222 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give MDC Holdings a green thumbs-up, and 57 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 $35.50.
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