M.D.C. Still in Doghouse

M.D.C. Holdings(MDC Quote) traded down Tuesday as investors couldn't get excited about a decent upside in the homebuilder's third-quarter earnings report and instead focused on the latest inflationary data showing a spike in producer prices.

M.D.C., which warned investors last month to expect a lackluster performance in the most recent period, earned $121 million, or $2.62 a share, in the three months to Sept. 30, up from $105.1 million, or $2.36 a share, a year ago. Sales rose 14% from last year to $1.17 billion.

The Thomson First Call mean estimate for the quarter called for earnings of $2.56 a share on sales of $1.16 billion. M.D.C. also reiterated full-year guidance for earnings above the mid-September Wall Street estimate of $10.44 a share. Analysts have since revised their forecasts up to an average $10.59 a share. ...