Toll Brothers Inc.
TOL,
shares ticked higher in the extended session Tuesday after the luxury-home builder’s results topped Wall Street expectations. The company reported third-quarter net income of $414.8 million, or $3.73 a share, compared with $273.5 million, or $2.35 a share, in the year-ago period. Revenue rose to $2.69 billion from $2.49 billion in the year-ago quarter, as delivered homes rose 5% to 2,524 units. Analysts surveyed by FactSet had forecast earnings of $2.85 a share on revenue of $2.4 billion on 2,422 deliveries. Toll Brothers forecast fourth-quarter deliveries of 2,650 to 2,750 homes at an average price of $1.01 million to $1.03 million. Analysts had estimated 2,618 deliveries at an average delivery price of around $987,000, and earnings of $3.32 a share on revenue of $2.57 billion for the fourth quarter. “While rising rates remain a challenge, they further cement the lock-in effect that has kept resale inventory at historically low levels,” said Douglas Yearley, Toll Brothers chairman and chief executive, in a statement. “With our deep and well-located land holdings, industry-leading brand, healthy backlog, more efficient operations and balanced spec strategy, we are well positioned to capitalize on continued solid demand for new homes.” Toll Brothers shares rose 1% after hours, following a 1.2% gain in the regular session to close at $75.92.
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