The onslaught of builder’s earnings this week wrapped up with William Lyon beating estimates on both orders and gross margins. 

The key takeaway was a stunning 117% year-over-year order growth, to 843 (which was the company’s highest total since 2005), and margins that came in at 19.2%, which was above J.P. Morgan’s 18.8% estimate. 

“The rise in 2Q orders was driven by a 76% increase in average community count, modestly below our 87%E, while absorption rose 23%, strongly above our flat estimate,” wrote J.P. Morgan’s Michael Rehaut. “By region, Arizona and Colorado rose 208% and 71%, respectively, while Nevada rose 1% and California fell 8%.”

Here are some other highlights:

  • Net new home orders of 843, up 117%
  • Dollar value of orders of $374.1 million, up 91%
  • Home sales revenue of $247.7 million, up 47%
  • Consolidated revenue of $254.7 million, up 42%
  • New home deliveries of 553 homes, up 65%
  • Average sales locations of 67, up 76%
  • Dollar value of homes in backlog of $471.5 million, up 55%
  • Home building gross margin of $47.5 million, up 19%

“Our second quarter results have demonstrated strong business momentum and execution as we benefited from a healthy spring selling season and our expanded geographic footprint,” said William H. Lyon, Co-CEO in a statement. “We recorded significant year-over-year increases across a number of key operational metrics, including home sales revenue, the unit and dollar value of orders and backlog, and the number of active selling communities. For the quarter ended June 30, 2015, we generated net income of $12.3 million, or $0.32 per diluted share. Positive demographics and employment growth in our markets in excess of the national average are both leading to solid demand against a backdrop of limited supply.”

The next quarter looks even stronger with July orders up 130% year over year.

“Overall, we continue to rate WLH Overweight, as we believe its valuation, at 7.8x our 2016E EPS versus our universe average of 10.6x, does not properly reflect our outlook for material earnings growth over the next two to three years, supported by WLH’s long land positions and attractive geographic exposures,” Rehaut wrote.