Calabasas CA, October 21--Homebuilder and mortage finance company Ryland Group Inc. said earnings rose 31 percent, driven by record third quarter new orders and closings.
Quarterly income was $83 million, or $3.32 a share, up from $63.3 million, or $2.40 a share, last year. Analysts surveyed by Thomson First Call estimated the company would post earnings of $3.30 a share.
Revenue rose 19 percent to $1.03 billion from $872.2 million a year ago.
Ryland posted gross profit margins from home sales of 23.1 percent for the quarter, up from 22.5 percent a year ago.
The homebuilding segment reported third-quarter pretax earnings of $136.5 million, up 35.4 percent from $100.8 million last year, mainly due to higher volume and increased margins on homes closed. Revenue for the segment rose 19 percent to $1.01 billion, driven by an increase in the average new home closing price.
New orders rose 4.9 percent to 3,932, as backlog rose 17.5 percent to 9,057 outstanding contracts -- $2.5 billion.
The company's financial services segment, which includes Ryland Mortgage Co. and its title, escrow and insurance services, reported pretax earnings of $15.7 million for the third quarter, up from $15.2 million last year, due to a gain on the sale of a portion of the investment portfolio.
Ryland expects earnings for the year ending Dec. 31, 2005, to exceed $14 a share. Analysts currently estimate the company's earnings for the year at $13.25 a share.
The company also said it will increase its quarterly dividend to 12 cents from 10 cents, effective in the fourth quarter.
