Money Investor
Long/short equity

MDC Q2 2013 Earnings: The Fallacy Of Following The Headlines

M.D.C. Holdings (NYSE:MDC) reported its Q2 2013 earnings Tuesday. The results, excluding a one time positive adjustment from the reversal of a deferred tax asset, soundly beat analyst expectations. Earlier this month, I published an article in which I provided my own estimate for Q2 2013 earnings, which were significantly higher than what the street was expecting. As it turns out, my expectation for a significant earnings beat was proved correct this morning when the company reported adjusted earnings of $.76 per share which beat the consensus estimate by $.21 per share. My own estimate was for the company to report earnings of $.68 per share. Even with this significant earnings beat, the stock has seen...

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