Shares in Tri Pointe Homes gain after 2Q results

Orders for new houses and higher prices helped Tri Pointe Homes beat analysts' 2Q estimates

Associated Press

IRVINE, Calif. (AP) -- Orders for new houses and higher home prices helped Tri Pointe Homes turn in better quarterly earnings and revenue than analysts expected on Tuesday.

The results helped lift shares by nearly 4 percent in afternoon trading, climbing 58 cents to $15.50.

Before the market opened, Tri Pointe Homes Inc. posted second-quarter net income of $2.1 million, or 7 cents per share. That's up from its net loss of $1.3 million, or 9 cents per share, in the 2012 second quarter.

Total revenue was $51.1 million, more than a six-fold jump over the $7.8 million reported the year before.

On average, analysts had forecast second-quarter earnings of 5 cents and revenue of $43.7 million, according to the data provider FactSet.

Deliveries, sale prices and orders for new houses powered Tri Pointe's quarterly results. The company delivered 91 houses in the quarter versus 19 the year before, and their average sale price increased 28 percent to $522,000.

Tri Pointe said it received 131 orders for new houses in the second quarter, the highest number of orders since it began buying land in 2010.

The increase in new orders, in part, led Tri Pointe to raise its estimate for the number of units it expects to deliver in 2013: to a range of 370 to 380, from 350 to 360.

For the full year, Tri Pointe projects revenue from home sales of $215 million to $220 million and earnings per share between 40 cents and 42 cents.

Wall Street was forecasting revenue, on average, of $208.7 million, and earnings per share of 30 cents.

Tri Pointe, based in Irvine, Calif., became a publicly traded company in January following its $233 million IPO. Investors in the IPO bought the company's shares at $17.

Barry Sternlicht, the founder of Starwood Hotels & Resorts who now heads the Starwood Capital Group investment firm, is chairman of Tri Pointe's board.

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