Calabasas-based homebuilder Ryland Group Inc. reported a dramatic increase in fourth quarter net income, exceeding analysts’ estimates and raising its profit guidance for 2005.
After the close of trading on Tuesday, Ryland reported net income of $108.7 million, or $2.17 per diluted share, for the period ended Dec. 31, up from $86.1 million ($1.65 per share) for the year-earlier quarter.
Fourth-quarter revenue rose 16.1 percent to $1.24 billion from $1.07 billion in the like year-ago period.
The company said orders for new homes rose 27.1 percent in the fourth quarter to 3,217 from 2,532 in the year-earlier period, and said backlog at Dec. 31 rose 43.6 percent to a record $2.1 billion.
The company raised its 2005 profit guidance to $7.25 per share. Analysts had been expecting $7.10 per share.
Ryland shares rose 2.4 percent to $61.36 ahead of the earnings announcement. Investors are keeping a close eye on a Commerce Department report on new housing starts for December, which is due out Wednesday. Homebuilders’ shares fell sharply last month when November housing starts unexpectedly fell 13.1 percent.