Ryland Group Inc. reported second-quarter earnings on Thursday that topped Wall Street expectations even though revenue fell short of forecasts.
The Westlake Village homebuilder announced net income of $42.6 million (75 cents a share) for the quarter ended June 30, compared to $32 million (57 cents) for the same quarter last year. Revenue increased 13.2 percent to $654 million.
Analysts on average expected net income of 73 cents a share on revenue of $665 million.
The company said new orders in the quarter rose 7.1 percent to 2,387 units, generating 12.5 percent higher homebuilding revenue of $637 million. Closings rose 6.7 percent to 1,814 units, with the average price up 5.4 percent to $351,000.
The home builder also reported transaction costs of $3.6 million in the quarter related to its pending acquisition by Irvine-based Standard Pacific Corp. The merger, announced last month, will form the country’s fourth-largest residential U.S. home developer.
The two companies’ respective boards of directors unanimously approved the stock transaction, which will leave Ryland shareholders with about 41 percent ownership of the combined company and Standard Pacific stockholders with 59 percent. The combined company, which will operate under Standard Pacific’s corporate identity, will have a $5.2 billion market capitalization.
Ryland shares closed down $1.14 or 2.5 percent to $44.68 on the New York Stock Exchange.