Calabasas-based homebuilder Ryland Group Inc. said third-quarter net income fell 26 percent as sales incentives reduced earnings, but the financials still beat analyst estimates.

Ryland reported after Wednesday’s market close that net income declined to $87.9 million ($1.97 a share), from $118 million ($2.39) for the same period a year ago. New orders fell 45.6 percent to 2,372 from 4,361 in the same period last year, said the company, which is considered the nation’s largest homebuilder for first-time buyers.

The consensus of analysts surveyed by Thomson Financial was that Ryland earnings would only do as well as $1.77 a share. Ryland share, which had closed at $43.66 prior to the earnings release, jumped as much as 5.4 percent to $46.01 in after market trading.

Ryland said it was able to raise prices despite a weak U.S. housing market and reiterated its previous forecast for full-year earnings of between $7.75 and $8.25 a share. Ryland had lowered its forecast three times already this year.

In an earlier announcement, Ryland said it promoted Kipling Scott, who most recently served as president of the company’s North Central region, to the new position of chief operating officer.