Homebuilder Toll Brothers 2Q Earnings More Than Do
Horsham, PA, May 26—-Luxury home builder Toll Brothers reported second-quarter earnings that more than doubled on strong demand and increased prices.
The company’s net earnings rose 135 percent, to $170.1 million, or $2.01 per share, for its fiscal second quarter ended April 30 from $72.4 million, or $0.89 per share, in the year-ago quarter.
Analyst had forecast $1.79 per share.
Revenue for the quarter rose 52 percent, to $1.25 billion, with contracts up 38 percent, to $2.2 billion.
Toll said that based on its second-quarter results and record $5.87 billion backlog of homes under contract, it now expects net income for the full year to increase by 70 percent over 2004 levels, up from its previously raised forecast of 60 percent growth.
The company's second-quarter contracts and backlog were the highest for any quarter in its history. It said it signed contracts on 5,354 homes in the first two quarters. Previously, it had forecast contracts on 8,050 to 8,400 homes for the full year.
Robert Toll, chairman and chief executive, said, "With increasing numbers of communities in lot-constrained markets, our growing brand name and our broadening diversity of luxury new home product lines, we continue to produce record results."
The company said it expects to end fiscal 2005, which ends in October, with about 240 selling communities, compared with 220 at end of the 2004 fiscal year. It now controls 68,000 home sites, up 10,000 from a year ago.
The company raised its outlook for 2005, it still expects to exceed this year's earnings by 20 percent in 2006.
