NEW YORK - Luxury homebuilder Toll Brothers Inc. (NYSE:TOL) reported better-than-expected third quarter results on Tuesday, as the company benefited from strong demand and higher home prices. The stock rose 1.48% in after-hours trading following the release.
Toll Brothers reported earnings per share of $3.60 for the quarter ended July 31, beating analyst estimates of $3.31. Revenue came in at $2.73 billion, slightly above the consensus forecast of $2.71 billion and up 2% YoY.
The company delivered 2,814 homes in the quarter, an 11% increase from the same period last year. The average price of homes delivered was $968,200, down from $1,059,700 a year ago.
Net signed contracts rose 11% in both units and dollar value compared to last year's third quarter. Toll Brothers ended the quarter with a backlog of 6,769 homes valued at $7.07 billion, down 7% and 10% respectively from a year ago.
"We are very pleased to report another quarter of strong results," said Douglas C. Yearley, Jr., chairman and CEO. "Our adjusted gross margin, at 28.8% in the quarter, significantly exceeded guidance due to favorable mix and greater efficiencies in our home building operations."
Based on the strong performance, Toll Brothers raised its full year guidance. The company now expects adjusted gross margin of approximately 28.3% for fiscal 2024, up from previous guidance.
Toll Brothers repurchased $246 million of common stock in the quarter and increased its expected share repurchases for fiscal 2024 from $500 million to $600 million.
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