M.D.C. Holdings Stock Plunges After Q4 Results; Bottom-Line Misses Estimate

M.D.C. Holdings Inc MDC reported fourth-quarter home sale revenue growth of 22% year-over-year to $1.44 billion, with Unit deliveries up 4% to 2,663, and average selling price of deliveries up 17% to $539,000.
Financial services revenue declined by 30.4% Y/Y to $30.77 million.
EPS improved to $2.21 from $2.03 in 4Q20, missing the consensus of $2.49.
Gross margin from home sales expanded 150 basis points to 23.5%. Homebuilding pre-tax income increased 36% to $193.5 million.
SG&A expenses as a percentage of home sale revenues improved by 90 bps to 9.1%.
The dollar value of net new orders increased 9%Y/Y to $1.43 billion. The monthly sales absorption rate was 4.5 vs. 4.7 in the prior period quarter, and the average selling price of net orders improved 12%.
The company's net cash used in operating activities for the year totaled $207.99 million, compared to $23.09 million a year ago.
The backlog dollar value was $4.30 billion (+32% Y/Y) as of December 31, 2021. Backlog units up 15% to 7,640; and Lots controlled of 38,080 (+29% Y/Y).
Recently, the company's board declared a quarterly cash dividend of $0.50 per share, payable on February 23, 2022, to shareholders of record on February 9, 2022.
1Q22 Outlook: The company's projected home deliveries stand at 2,000 - 2,300 with an average selling price of $550,000 - $560,000. It projects a gross margin from home sales of ~25%.
FY22 Outlook: The company projects home deliveries of 10,500 - 11,000.
Price Action: MDC shares are trading lower by 7.85% at $46.71 on the last check Tuesday.

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M.D.C. Holdings Stock Plunges After Q4 Results; Bottom-Line Misses Estimate

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