Calabasas, CA, May 24, 2006–Home builder Ryland Group Inc., on Wednesday cut its 2006 earnings forecast as its second-quarter home sales are running 35 percent lower than a year earlier.
The shares fell $1.05, or 2 percent, to $51.49 in extended trade.
The company said it expects 2006 earnings of $8.50 and $9.00 per share based on the sale of 16,500 to 17,000 homes with gross profit margins of 23.2 percent.
Ryland on April 20 lowered its forecast for 2006 earnings to $9.50 per share on projected sales of 17,500 homes with an average sale price of $300,000.
The company on Wednesday also forecast second-quarter earnings of $1.95 to $2.00 per share.
Ryland added that so far this year, it has bought back 2.2 million shares of its common stock for about $145 million.
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