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Earnings Analysis: 
M.D.C. Posts Record Results
Author: George Shopov
123jump.com



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Homebuilder M.D.C. Holdings Inc. announced after the bell Monday its highest ever quarterly net income and revenues, driven by an increase in average selling price on a record number of homes closed.

 
M.D.C. Holdings, Inc. (MDC: chart) posted after market close Monday a 61% jump in its quarterly profits, powering past Wall Street’s projections, due to an increase in average selling price on a record number of homes closed. The Denver, Colorado-based homebuilder turned in a net profit of $105.1 million, or $3.07 a share, for its fiscal third quarter, in contrast to a profit of $65.5 million, or $1.96 a share, for the 2003 equivalent. The average analysts’ estimate was for earnings of $2.73 a share. Total revenues rose 28% to $1.03 billion in the quarter ended September 30, from year-earlier revenues of $798.9 million. The company said that its 2004 third-quarter net income and revenues were the highest in its 32-year history. For the first nine months of 2004, M.D.C. announced net income of $248.5 million, or $7.29 per share, on revenues $2.67 billion. That compares to net income of $145.2 million, or $4.39 per share, on revenues of $2.06 billion, for the same period last year.

Company shares gained 75 cents on Monday to $68.15. The stock dropped 5 cents to $68.10 in after-market trade.

Infosys Technologies Limited (INFY: chart) said Monday that its second-quarter net income surged 49% to 4.47 billion rupees ($97 million) from 3.0 billion rupees, for the prior-year period. The Bangalore, India-based information technology services firm beat analysts’ estimates for a profit of 4.32 billion rupees. Quarterly revenue advanced 52% to 17.5 billion rupees. Infosys attributed the results to increased outsourcing by telecommunications and financial companies.

The stock closed Monday at $56.05, up 26 cents, or 0.47%. Infosys shares added 10 cents to $56.15 in the extended session.

ADTRAN, Inc. (ADTN: chart) of Huntsville, Alabama, announced Monday quarterly earnings that missed analysts’ forecasts, hurt by lower-than-expected bookings. The networking equipment company posted a profit of $18.8 million, or 23 cents a share, for its third quarter, up from $17.2 million, or 21 cents a share, generated a year earlier. Sales for the quarter improved to $115.3 million from $106.2 million, in 2003. Analysts were looking for earnings of 24 cents a share, on sales of $115 million.

Company shares rose 0.29% to $20.47 at market close Monday. The stock inched up 2 cents to $20.49 in after-hours trading.

Stanley Furniture Company, Inc. (STLY: chart) reported Monday a third-quarter profit of $5.3 million, or 81 cents a share, up from a year-earlier profit of $3.7 million, or 59 cents a share, due to higher sales. The earnings of the Stanleytown, Virginia-based furniture maker outpaced the mean analysts’ forecast of 73 cents a share. The company recorded net sales of $77.2 million in the quarter, an 18.3% increase from last year.

The stock dipped 4.11% to close Monday at $42.67.

Universal Forest Products, Inc. (UFPI: chart) of Grand Rapids, Michigan, said Monday that its third-quarter earnings advanced 20% from a year ago, boosted by strong sales of its construction and industrial lumber products. The company rolled out a profit of $14.6 million, or 78 cents per share, for the third quarter of fiscal 2004, against a profit of $12.2 million, or 66 cents per share, in 2003. Results were 2 cents a share ahead of the average analysts’ estimate. Quarterly net sales leapt 32% to $709.3 million from $536.3 million.

Company shares shed 25 cents on Monday to $35.80. The stock rose 4.75% to $37.50 in extended trade.

Advanced Micro Devices, Inc. (AMD: chart) reported after market close Thursday that it swung to a quarterly profit from a year-earlier loss, driven by rising sales. The world’s No.2 maker of PC microprocessors posted earnings of $43.8 million, or 12 cents a share, for the third quarter of fiscal 2004, rebounding from a loss of $31.2 million, or 9 cents a share, a year ago. The results matched analysts’ expectations. For the quarter ended September 26, sales leapt 30% to $1.24 billion from $954 million, last year. Analysts had expected AMD to report sales of $1.3 billion for the third quarter. Sunnyvale, California-based AMD said sales in its Computation Products Group jumped 34% from a year ago to $672 million, boosted by stronger-than-expected demand for its microprocessors. Sales of flash memory chips advanced 27% to $538 million from $424 million, in 2003. For the first nine months of 2004, the company earned $121.1 million, or 32 cents per share, in contrast to a loss of $317.7 million, or 92 cents per share, for the 2003 comparable period.

Alcoa Inc. (AA: chart) announced Thursday that its quarterly earnings increased slightly from a year ago, hurt by higher labor costs and damage from Hurricane Ivan. The Pittsburgh, Pennsylvania-based world’s top aluminum producer reported third-quarter net income of $283 million, or 32 cents per share, against net income of $280 million, or 33 cents per share, last year. Excluding losses from discontinued operations, profits amounted to $298 million, or 34 cents per share, for the quarter ended September 30, meeting Wall Street’s projections. Quarterly sales rose 12.5% to $5.98 billion.

Costco Wholesale Corporation (COST: chart) of Issaquah, Washington, said Thursday that its fourth-quarter net profit advanced 24% to $296.8 million, or 62 cents a share, from a prior-year net profit of $239.4 million, or 51 cents a share. The U.S. biggest wholesale club operator beat by 4 cents a share the average analysts’ estimate. The company attributed the results to higher sales, which climbed 11% in the quarter to $14.83 billion from $13.42 billion. Same-store sales improved 8% from a year ago.

Marriott International, Inc. (MAR: chart) on Thursday turned in earnings of $133 million, or 56 cents per share, for its fiscal third quarter, a 45% surge from $92 million, or 37 cents per share, generated in the same period a year earlier. The Bethesda, Maryland-based hotel operator said improving travel environment helped boost its profits. The third-quarter earnings were a penny a share ahead of the mean analysts’ forecast. Revenue in the quarter was up to $2.3 billion from $2.1 billion, in 2003.

ATI Technologies Inc. (ATYT: chart) posted Thursday quarterly profits that nearly tripled from a year ago, bolstered by strong demand for its computer graphics chips and boards. The Markham, Canada-based company announced net income of $61.2 million, or 24 cents a share, for its fiscal fourth quarter, in contrast to net income of $22.3 million, or 9 cents a share, for the 2003 equivalent. The consensus analysts’ estimate was for a profit of 21 cents a share. Quarterly sales swelled to $572.2 million from $380.7 million.
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