Toll Brothers earnings top estimates, shares rise
The luxury homebuilder said it is maintaining its full-year projection of 20% revenue growth
Toll Brothers delivered fiscal second-quarter profit and revenue that topped Wall Street expectations.
Shares of the luxury homebuilder gained more than 6% in extended trading.
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Earnings for the quarter came in at $220.6 million, up from $127.9 million a year earlier.
That works out to $1.85 on a per-share basis.
A Toll Brothers housing development is shown in Carlsbad, California. REUTERS/Mike Blake (REUTERS/Mike Blake / Reuters Photos)
The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.46 per share.
The homebuilder posted revenue of $2.28 billion in the period, also beating Street forecasts. Four analysts surveyed by Zacks expected $2.05 billion.
"While demand is still solid, over the past month it has moderated from the unprecedented pace of the past two years as buyers adapt to higher mortgage rates and other macro-economic conditions," said Douglas C. Yearley, Jr., chairman and chief executive officer of Toll Brothers.
"However, the many fundamental drivers of housing demand remain firmly in place," Yearley added. "These include favorable demographics, the significant imbalance between the supply and demand for homes, and migration trends. We believe these factors will support a healthy housing market over the long term."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TOL | TOLL BROTHERS INC. | 113.17 | -0.24 | -0.22% |
Toll Brothers said its board on May 17 refreshed the authorization for the company to repurchase its common stock by up to 20 million shares, or about $900 million at its current market price.
A nearly finished Toll Brothers home is seen in Broomfield, Colorado ( REUTERS/Rick Wilking )
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Looking ahead, the company said its net signed contract value totaled $3.1 billion, pushing its second-quarter backlog to a record $11.7 billion and 11,768 homes. Based on the strength of its backlog, Toll Brothers said it is maintaining its full-year projection of 20% revenue growth.
The Associated Press contributed to this report.