MDC Holdings 4Q Profit Up on Higher Prices Tuesday January 17, 7:44 am ET MDC Holdings Fourth-Quarter Profit Rises 39 Percent on Higher Closings, Prices
DENVER (AP) -- MDC Holdings Inc., one of the nation's biggest homebuilders, said Tuesday that its fourth-quarter profit rose 39 percent due to increased levels of home closings and average selling prices, allowing the company to beat Wall Street estimates. ADVERTISEMENT Net income grew to $197.5 million, or $4.29 per share, from $142.6 million, or $3.17 per share, a year ago, as the company closed on 4,951 homes, a 15 percent increase from last year. Revenue rose 30 percent to $1.74 billion from $1.34 billion, with average selling prices rising 13 percent from the year-ago quarter to $345,100.
Analysts surveyed by Thomson Financial expected earnings per share of $4.01 on revenue of $1.68 billion.
For the full year, the company posted net income of $505.7 million, or $10.99 per share, up from $391.2 million, or $8.79 per share, last year. Revenue rose 22 percent to $4.88 billion from $4.01 billion a year ago. Analysts forecast earnings per share of $10.73 on revenue of $4.82 billion.
The company said it is well-positioned for higher revenue, home closings and net income in 2006. Analysts estimate 2006 earnings per share of $11.75 on revenue of $5.4 billion.
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