Thanks to the rebound in the housing market, many homebuilders
are now turning quarterly profits. Some are even on track to get
back in the black on an annual basis for the first time in
Denver-basedMDC Holdings (
), which builds homes under the Richmond American Homes name, is
expected to end five straight years of losses when it reports
fourth-quarter and full-year results before the market opens
Analysts polled by Thomson Reuters see MDC posting earnings of
40 cents a share in Q4, which would reverse a loss of 40 cents
cent a share a year ago.
Sales are expected at $365.8 million, up 48% from a year ago.
Top-line growth had accelerated in the latest two quarters.
The company is expected to turn a profit of $1.04 a share for
all of 2012. MDC lost $2.12 a share in 2011. For 2013, profit is
slated to ramp up to $1.53 a share. The estimate was recently
MDC has a Composite Rating of 97 -- one of the highest in the
Building-Residential/Commercial industry group. The group was
ranked 14 out of the 197 tracked by IBD.
Despite losing money in 2006 through 2011, MDC paid
shareholder dividends of $1 a share. Last year, MDC again paid
out $1 a share. It also doled out another buck a share in late
December, which represented an accelerated payout of dividends
At the $1-a-share rate, MDC offers investors an annualized
yield of about 2.5%. The stock has the biggest yield among the
six dividend-paying companies in its group.D.R. Horton (
), which reports fiscal Q1 results Tuesday, has a yield of 0.7%,
second highest among the homebuilders.
Even though nearly all homebuilders stumbled Monday on news of
disappointing December pending-home sales, MDC bucked the trend.
It rallied to its best levels since early November.
The stock cleared a 31.60 buy point from a first-stage
cup-with-handle base Jan. 17. MDC reset its base count after
breaching the low of a prior base in November.
Volume grew only 25% above average on breakout day, which is
on the soft side.