This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Homebuilder Ryland Group Moves To Profit In 3Q

ALEX VEIGA

LOS ANGELES (AP) â¿¿ Ryland Group Inc. said Wednesday it returned to a profit in the third quarter, as the homebuilder sold more homes and benefited from higher prices.

The results trumped Wall Street's expectations, sending shares in the Westlake Village, Calif., company up more than 5 percent in after-hours trading.

Ryland, ranked the nation's eighth-largest homebuilder last year, said completed sales jumped 37 percent versus the same quarter last year to 1,312 homes. And contracts for new homes vaulted nearly 56 percent to 1,500.

The builder also ended the quarter with a backlog of 2,465 homes under contract, an increase of 58 percent from a year earlier.

The positive sales trends reflect overall improving demand for new homes this year â¿¿ a marked turnaround from last year, when new home sales sank to a record low.

New home sales are up 27.1 percent nationally this year. They climbed 5.7 percent last month to a seasonally adjusted annual rate of 389,000, the highest level in more than two years.

Many economists anticipate sales will continue improving, thanks in part to rising home values, low mortgage interest rates and a tighter supply of homes for sale in many markets after years of depressed home construction.

But a slowing economy, still-high unemployment and the threat of a severe downturn in Europe are expected to slow the pace of a full housing recovery for several years.

Even so, fortunes have clearly begun to turn around for builders like Ryland.

The company reported net income of $10.6 million, or 22 cents per share, for the three months ended Sept. 30. That compares with a loss of $21.3 million, or 48 cents per share, in the same quarter last year.

Revenue grew 44 percent to $358.7 million from $248.6 million a year earlier.

Analysts' consensus forecast called for earnings of 17 cents per share on $348.2 million in revenue, according to FactSet.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs