Huntingdon Valley, PA, December 9--Luxury homebuilder Toll Brothers said Thursday that fourth-quarter earnings nearly doubled year-over-year, and the company predicts that profit will grow by at least 40 percent in fiscal 2005.
Net income rose to $180.6 million, or $2.22 per share, from $93.4 million, or $1.19 per share, a year ago.
Analysts surveyed by Thomson First Call were looking for the company to post earnings of $1.97 per share on sales of $1.43 billion in the latest period.
Sales increased 62 percent to $1.46 billion from $903.4 million last year, with quarterly home building revenue rising 62 percent to $1.44 billion from $893.7 million in the 2003 period. Contracts rose 51 percent to $1.53 billion, or 2,248 homes, from $1.02 billion, or 1,749 homes, a year ago.
Revenue from land sales totaled $1.6 million for the latest fourth quarter, below year-ago revenue of $6.4 million. At the end of the quarter, backlog was $4.43 billion or 6,709 homes, 68 percent higher than year-ago backlog of $2.63 billion or 4,652 homes.
Looking ahead, Toll Brothers is forecasting that 2005 earnings will rise by at least 40 percent, based on projected home building revenue of $5 billion and $5.35 billion.
Chairman and chief executive officer Robert I. Toll said, "With demand outpacing supply in most of our affluent markets, we believe the 60,000 lots we now control represent a five- to six-year pipeline for continued growth. Since we plan to continue increasing our selling communities over the coming years, we believe we are positioned to produce net income and revenue growth of at least 20 percent in fiscal 2006 and subsequent years."
