NEW YORK (TheStreet) -- Tri Pointe Homes (TPH) was surging 3.9% to $15.50 after the Irvine, Calif.-based homebuilder posted strong second-quarter results and the company raised its outlook for the remainder of 2013.
For the second-quarter, Tri Pointe Homes earned 7 cents per share on $51.1 million in sales, up from $7.8 million in revenue in the second quarter of 2012. Aiding revenue this quarter was the increase in Home sales, which rose to $47.5 million million from $7.7 million, as the company delivered 91 homes during the quarter.
During the quarter, new home orders increased to 131 homes, the highest it's been since the company began acquiring land in 2010. Gross margins rose to 19.3% from 12% year-over-year.
CEO Douglas Bauer noted the strength in the company's core markets, which include Orange County, when talking about the increase in home prices."We are beginning to capitalize on the benefits of the imbedded growth in our homebuilding activities as a result of our strategic land acquisitions and the planned rollout of new communities," Bauer said in the press release. "Although we increased our home prices, which reflects the significant underlying strength in our core markets, it did not slow absorption. We were raising prices to regulate the pace of sales and enhance our margins." Tri-Pointe raised his revenue guidance for the rest of 2013, along with delivery guidance. It now expects to deliver a range of 370 units to 380 units, up from a range of 350 to 360. It also updated homes sales revenue, and now expects to generate $215 million and $220 million in revenue, earning between 40 cents and 42 cents per share. Analysts polled by Thomson Reuters are expecting Tri Pointe to earn 30 cents per share on $209.19 million in sales for the full year. The strong results showcased by Tri Pointe demonstrate the strength seen in the California housing market, particularly Orange County. Last week, newly public William Lyons Homes (WLH) put up strong second quarter results, generating revenue of $120.6 million for the quarter, up 122% year-over-year as the Southern California market continues to turn around.
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