Calabasas, CA, October 19, 2005--Ryland Group reported earnings that rose 42 percent as stronger closings lifted the homebuilder's sales by 21 percent.
Quarterly profit rose to $118 million, or $2.39 per share, compared to $83 million, or $1.66 per share, during the year-ago period. The third-quarter included a $0.10 per share charge for debt retirement.
Sales for the company increased to $1.23 billion from $1.01 billion in the year-ago period, reflecting an 11.7 percent increase in closings and an 8.2 percent jump in the average closing price of a home. Total revenue increased to $1.25 billion from $1.03 billion last year.
The results surpassed Wall Street profit projections for earnings of $2.29 per share, but missed revenue projections of $1.31 billion, according to analysts polled by Thomson Financial.
Looking ahead, Ryland forecast 2005 earnings will exceed $8.75 per share for the fiscal year -- well above Wall Street estimates of $8.63 per share. The company said it is also comfortable with Wall Street projections of $10.02 per share for 2006.
