The 10-second takeaway
For the quarter ended March 31 (Q1), MDC Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
MDC Holdings reported revenue of $344.3 million. The six analysts polled by S&P Capital IQ predicted net sales of $316.4 million on the same basis. GAAP reported sales were 77% higher than the prior-year quarter's $194.0 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 $0.45. The eight earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS of $0.45 for Q1 were much higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.0%, 300 basis points better than the prior-year quarter. Operating margin was 5.0%, 620 basis points better than the prior-year quarter. Net margin was 6.5%, 530 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $377.8 million. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $1.63 billion. The average EPS estimate is $2.33.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 474 members out of 624 rating the stock outperform, and 150 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give MDC Holdings a green thumbs-up, and 44 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 $36.70.
Can your portfolio provide you with enough income to last through retirement? You'll need more than MDC Holdings. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add MDC Holdings to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is 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 position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.