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Last Update: 22-Aug-12 09:17 ET
Toll Brothers shares rise 5% following better than expected EPS and revenues
Toll Brothers (TOL $33.50 +1.69) reported third quarter earnings of $0.36 per share, $0.19 better than the consensus of $0.17, while revenues rose 40.6% year/year to $554.3 million versus the $508.52 million consensus. The company issued in-line guidance for fiscal year 2012 revenues of $1.71-1.84 billion versus the $1.77 billion consensus. The company currently estimates to deliver between 800-1,000 homes in FY12's fourth quarter at an average price of between $570,000-590,000 per home. Also reports homebuilding deliveries of 963 units rose 41% in dollars and 39% in units, compared to FY11'sthird quarter. Net signed contracts of $674.4 mln and 1,119 units rose 66% in dollars and 57% in units, compared to FY11's third quarter. Backlog of $1.62 bln and 2,559 units rose 59% in dollars and 44% in units, compared to FY11's third-quarter-end backlog. The average price of homes delivered was $576,000, compared to $557,000 in FY12's second quarter and $569,000 in FY11's third quarter. The company stated: "We are enjoying the most sustained demand we've experienced in over five years...We believe the housing recovery is being driven by pent-up demand, very low interest rates and attractively priced homes...We do, however, remain cautious in our optimism as we believe consumer confidence remains fragile and subject to the impact of negative economic and political headlines."
