Savvy Trades and Investments

[cliffvb]

BZH and MDC are two more homebuilders out with strong earnings reports. For BZH, eps was 36c vs 16c estimate for the quarter and revs also beat estimates. Margins up and backlog is also nicely up by 14%. BZH is up 10%. MDC also had a nice beat with 68c eps vs 53c estimate and is up 8% today. Homebuilders outlook is strong despite an uptick in interest rates. I'll also probably add some CCS ahead of their earnings next week.

BZH Q2 (Mar) earnings of $0.36 per share, $0.20 better than the Capital IQ Consensus of $0.16; revenues rose 7.0% year/year to $455.2 mln vs the $439.15 mln two analyst estimate on a 2.2% increase in home closings to 1,266 and a 2.3% increase in average selling price to $348.4 thousand. Homebuilding gross margin was 16.9%, up 90 basis points. Unit orders of 1,679, up 8.4% on a 10.3% increase in sales/community/month to 3.7 and a 1.7% decline in average community count to 151 Dollar value of backlog of $885.4 million, up 14.0%