Calabasas, CA, July 21--The Ryland Group reported second quarter earnings of $104.3 million, or $2.10 per share, up 39 percent from $76.5 million, or $1.51 per share, in the year-earlier quarter.
Sales in the quarter rose 26 percent from a year earlier to $1.2 billion.
Analysts expected the company to post second quarter earnings of $1.80 a share and sales of $1.08 billion.
Orders for new homes rose 4.8 percent from a year earlier to 4,988 homes. The average selling price rose to $272,000 from $249,000.
Ryland ended the quarter with a backlog of 10,534 homes contracted for and awaiting construction, up 17 percent.
Looking ahead the company, raised its outlook for the year to above $8 per share, up from a previously raised forecast of $7.50.
Analysts expected Ryland to earn $8.11 for the year.
Despite persistent fears of a housing bubble, home builders have continued to rack up sales and ratchet up prices, as low mortgage rates and new lending products have made home ownership within reach of more Americans.
Demand for new homes continued in June with permits for new single-family homes rising 1.3 percent, slightly below the record pace in May 2004.
