Ryland Group Beats Up on Analysts Yet Again

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Ryland Group (NYS: RYL) reported earnings on May 8. Here are the numbers you need to know.

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.

Revenue details
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.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
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.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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At the time this article was published 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 ofMotley 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.

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