The 10-second takeaway
For the quarter ended March 31 (Q1), Ryland Group missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share contracted.
Margins grew across the board.
Ryland Group reported revenue of $215.9 million. The 14 analysts polled by S&P Capital IQ expected a top line of $221.3 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $167.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.01. The 11 earnings estimates compiled by S&P Capital IQ anticipated -$0.08 per share. GAAP EPS were -$0.12 for Q1 compared to -$0.44 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.2%, 90 basis points better than the prior-year quarter. Operating margin was 0.9%, 480 basis points better than the prior-year quarter. Net margin was -2.4%, 930 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $295.7 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is $0.53.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 250 members out of 601 rating the stock outperform, and 351 members rating it underperform. Among 210 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Ryland Group a green thumbs-up, and 134 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ryland Group is hold, with an average price target of $19.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.