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M.D.C. Holdings stock set to rally after new home orders, deliveries results

Tomi Kilgore

Shares of M.D.C. Holdings Inc. were indicated up nearly 3% in premarket trading Monday, after the home builder reported some preliminary second-quarter results that were above expectations. The company said net new home orders increased 32% from a year ago to 2,273, well above the FactSet consensus of 1,791, while deliveries inched up 0.1% to 1,514 to beat expectations of a 0.7% decline to 1,501. The average sales price of new orders was about $484,000. Homes in backlog increased 7% to 4,293, the most since 2006, while the FactSet consensus was for a 4.4% decline to 3,824. Gross margins are expected to exceed 19%, compared with the FactSet consensus for homebuilder gross margin of 18.8%. Full second-quarter results will be released on July 31. The stock has rallied 6.8% over the past three months, while the SPDR S&P Homebuilders ETF has gained 4.2% and the S&P 500 has advanced 3.3%.