Ryland Group Inc. on Tuesday announced net income that beat analysts’ expectations as the home-buying market continues to surge.
For the third quarter ending Sept. 30, the Westlake Village home builder reported net income of $53.6 million (95 cents a share) compared to $10.4 million (21 cents) in the same period last year. Revenue rose 61 percent to $576 million.
Ryland’s earnings beat the analysts’ per-share estimate of 90 cents, while missing on revenue estimates of $602 million, according to Thomson Financial.
The rise in homebuilding revenues was primarily attributable to a 44 percent increase in sales that totaled 1,883 units for the quarter, compared to 1,312 units for the same period in the prior year, as well as a 13 percent higher average closing price.
The homebuilder has opened several new communities in Colorado, Indiana and Texas in the last few months. Last summer, Ryland acquired the assets of Cornell Homes, a Philadelphia home builder, the fourth acquisition the company made in the year. The company has operations in 17 states.
Shares of Ryland closed up 50 cents, or a little more than 1 percent, to $44.54 on the New York Stock Exchange.