Ryland shares gain on housing market performance
Based in part on a 7.2 percent increase in third-quarter orders for new units, Westlake Village-based national homebuilder Ryland Group was trading higher Thursday after projected earnings beat Wall Street analyst expectations. Shares of Ryland Group closed at $35.78 on Oct. 23.
The company reported a third-quarter profit of $48.5 million and said it had a profit of 85 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 79 cents per share.
“We’re optimistic about the future of the homebuilding in the cities in which we build. Thanks to a strengthening employment picture, a favorable affordability dynamic and a low level of housing inventory,” Ryland CEO Larry Nicholson said in the company’s earnings call. “Given our excellent positioning within these cities, we can continue to make market share and improve on our results, provided the macro factors influence [on] housing remain stable.”
The company also repurchased 860,000 shares of its common stock during the third quarter of 2014. Ryland shares have decreased 20 percent since the beginning of the year.