Dallas, TX, January 25, 2006-- Home builder Centex Corp., said fiscal third-quarter profit leapt 30 percent as its houses fetched higher prices on the market, and the company kept costs under control.
Earnings increased to $329.3 million, or $2.49 per share, from $253.8 million, or $1.91 per share. On average, analysts were looking for earnings of $2.48 per share.
Revenue grew 25 percent to $3.74 billion from $2.99 billion in the year-ago quarter, driven by a 34 percent jump in home building revenue to $3 billion and a 22 percent rise in financial services revenue to $326.1 million. Offsetting the gains somewhat was a 10 percent drop in construction services revenue, which fell to $402.9 million.
Analysts expected slightly higher sales of $3.84 billion.
The company increased closings to 9,504 homes in the quarter and improved its operating margin by 130 basis points to 16.8 percent. Centex said a higher average sales price and leverage in its selling, general and administrative expenses fostered the wider operating margin.
Centex reaffirmed its fiscal 2006 outlook for earnings from continuing operations in a range of $9.65 to $9.85 per share, growth of 32 percent to 35 percent year-over-year. The mean forecast from analysts pegs earnings at $9.80 per share.
