Toll Brothers


Toll Brothers 1Q Revenue Rises 8.8%

Industries Reuters

Toll Brothers, the largest U.S. luxury homebuilder, reported a higher-than-expected 8.8 percent rise in quarterly revenue, as it sold homes at higher prices, and said it was optimistic about the spring selling season.

Continue Reading Below

Low interest rates and a steady rise in employment have allowed homebuilders to raise prices.

Toll Brothers, whose homes can cost more than $2 million, said orders rose 17.6 percent to 1,250 homes in the first quarter ended Jan. 31.

"The stock market seems to be pricing in a steep decline in the economy and, along with it, our sector," Executive Chairman Robert Toll said in a statement.

"We, on the other hand, are seeing signs that reflect strength and positive momentum in our business."

Toll Brothers said it now expected to sell 5,700-6,400 homes in 2016, compared with 5,600-6,600 estimated previously.

Continue Reading Below

The company also raised the low end of its 2016 average selling price forecast to $810,000-$850,000, from $800,000-$850,000.

Revenue rose to $928.6 million from $853.5 million a year earlier.

The company's net income fell to $73.2 million, or 40 cents per share, from $81.3 million, or 44 cents per share, a year earlier.

Analysts on average had expected first-quarter earnings of 40 cents per share on revenue of $916.3 million, according to Thomson Reuters I/B/E/S.

(Reporting by Radhika Rukmangadhan and Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)