MDC Holdings shares tumble after Q4 results disappoint

MDC Holdings

01/02/2022 16:26

** Shares in homebuilder MDC Holdings Inc  MDC.N  down 9.8% on
track for biggest one-day pct decline since June 2020 after its
quarterly earnings and revenue fell short of Wall Street
expectations
    ** MDC was the biggest percentage decliner in the PHLX
Housing index  .HGX  which was off 1.85%, erasing most of its
Monday gains. Commerce dept data on Tuesday showed U.S.
construction spending increased less than expected in December
as a solid rise in private projects was partially offset by a
sharp decline in outlays on public projects.  urn:newsml:reuters.com:*:nL1N2UB2UP
    ** MDC report of adj EPS of $2.21 compared with consensus
expectation for $2.49 while its rev of $1.47 bln compares with
Wall Street's expectation for $1.55 bln, according to Refinitiv
    ** Co tone was bullish however as it said "order activity
stayed above normal seasonal levels during the quarter" and that
it expects demand drivers to continue into the new year
    ** MDC projected 2,000-2,300 home deliveries for Q1 of 2022
with an average selling price of $550,000-$560,000 and a
projected gross margin of 25%, assuming no impairments or
warranty adjustments
    ** Projects 2022 home deliveries of 10,500-11,000 assuming
no improvements in Q4's average sale-to-close time.  
    ** MDC's last trading price of $45.73 compares with median
analyst price target of $63, according to Refinitiv
    ** Other housing industry companies declining on Tuesday
included Lennox International Inc  LII.N , down 4.1% after it
reported quarterly results  urn:newsml:reuters.com:*:nPn1khzNBa

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com;))