Dallas, TX, October 27--Homebuilder and mortgage company Centex Corp. posted a 12 percent increase in quarterly profit and raised its profit outlook for the year.
Centex shares rose slightly in after hours trading.
The company reported a net profit of $210.6 million, or $1.61 a share, in its fiscal second quarter, up from $188.1 million, or $1.44 a share, a year earlier. Analysts had expected earnings of $1.59 a share, according to Reuters Estimates.
"Home building continued its strong growth pattern, while conventional mortgage lending's earnings reflect the anticipated decline in refinancing activity," Centex chairman and chief executive Tim Eller said in a statement.
Sales rose to $2.98 billion from $2.43 billion last year. Analysts had expected $2.89 billion, according to Reuters Estimates.
Centex, which develops single-family homes, townhouses and low-rise condominiums, said it now expects to earn $7.25 to $7.50 a share for the 2005 fiscal year, up from its previous forecast of $6.75 to $7.25 a share.
Analysts were expecting full-year earnings of $7.03 a share, according to Reuters Estimates.
Homebuilding revenue in the second quarter rose 31 percent from last year to $2.23 billion, and operating earnings increased 40 percent.
Sales in its financial services business fell 5 percent from last year to $276.9 million, and operating earnings fell 30 percent.
The company said closings in its U.S operations during the second quarter rose by 13 percent to 7,831 homes and margins, boosted by higher home prices, rose to 27.4 percent from 27.2 percent.
New home orders in the United States in the quarter rose 6 percent to 8,496 units.
The company ended the quarter with a sales backlog of homes awaiting construction in the United States of 17,727 units, 16 percent higher than a year earlier. The value of the backlog rose 38 percent to $5.365 billion.
