Ryland’s Net Income Increases 36%

Home builder Ryland Group Inc. reported second-quarter profit that beat Wall Street estimates by a wide margin, boosted by higher prices and a record number of closings.

Ryland, based in Calabasas, posted net income of $104.3 million, or $2.10 a share, up 36% from $76.5 million, or $1.51, a year earlier.

Sales climbed 26% to $1.2 billion.

Analysts on average had expected the company to post earnings of $1.80 a share and sales of $1.08 billion, according to Reuters Estimates.

Ryland reported that orders for new homes in the quarter rose to 4,988 homes, up 4.8% from a year earlier. The average selling price rose to $272,000 from $249,000. Ryland ended the quarter with a backlog of 10,534 homes contracted for and awaiting construction, up 17%.

Shares of Ryland, which reported after the market close, rose $1.76 to $83.13, a 52-week high, and have gained 44% year to date.