Toll Brothers Profit Doubled on Higher Home Prices


Toll Brothers Inc's quarterly income more than doubled as the largest U.S. luxury homebuilder sold more homes at higher prices.

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The company sold 1,444 homes in the third quarter ended July 31, up from 1,059 a year earlier. The average selling price rose 12 percent to $732,000.

Toll, whose homes can cost more than $2 million, has performed better than other U.S. homebuilders as its affluent customers have been less affected by a rise in mortgage rates over the past year.

No.1 U.S. homebuilder D.R. Horton Inc, which mainly serves first-time buyers, had to offer discounts to boost sales in some markets in its quarter ended June 30.

Toll said on Wednesday it did not offer sales incentives.

"With pent-up demand still yet to be unleashed, we are growing community count in attractive locations," Chief Executive Douglas Yearley said in a statement.

The company's net income jumped to $97.7 million, or 53 cents per share, from $46.6 million, or 26 cents per share, a year earlier.

Revenue rose 53 percent to $1.06 billion in the three months ended July 31 - a period just after the spring selling season, which is to homebuilders what the holiday shopping season is to retailers.

Up to Tuesday's close of $35.63, the stock had fallen about 4 percent this year, compared with an about 3 percent drop in the Dow Jones U.S. Home Construction index.