Luxury U.S. home builder Toll Brothers (TOL) has reported fiscal third-quarter financial results that beat Wall Street’s forecasts on the top and bottom lines.
The Pennsylvania-based company announced earnings per share (EPS) of $3.60 U.S., which topped consensus analyst estimates that called for $3.31 U.S.
Revenue in the quarter totaled $2.72 billion U.S., which was also better than the $2.71 billion U.S. that had been expected. Sales were up 2% from a year earlier.
Management said Toll Brothers achieved record third-quarter home sales as declining mortgage rates in America are boosting demand.
The company also reported a better-than expected gross margin of 28.8%, and an 11% increase in signed contracts for new home builds.
The company said that it delivered 2,814 homes in the quarter, up 11% from a year ago. The average price of a Toll Brothers home in the quarter stood at $968,000 U.S.
In terms of guidance, Toll Brothers raised its full-year outlook, saying that it expects earnings of $14.50 U.S. to $14.75 U.S. a share. Analysts had expected the company to earn $14.17 U.S. a share.
For all of fiscal 2024, Toll Brothers expects to deliver 10,650 to 10,750 homes at an average price of $975,000 U.S. and report a gross margin of 28.3%.
The stock of Toll Brothers has increased 78% over the last 12 months and currently trades at $133.52 U.S. per share.