Luxury-home builder Toll Brothers Inc. (TOL) has surpassed Wall Street expectations with its third-quarter financial results. The company reported a net income of $414.8 million, or $3.73 per share, compared to $273.5 million, or $2.35 per share, in the same period last year. Additionally, revenue increased to $2.69 billion from $2.49 billion in the previous year’s quarter, with delivered homes rising by 5% to 2,524 units.
Analysts surveyed by FactSet had predicted earnings of $2.85 per share on revenue of $2.4 billion, with an estimated 2,422 deliveries. However, Toll Brothers outperformed these forecasts, delivering 2,524 homes and achieving higher earnings per share.
For the fourth quarter, Toll Brothers forecasts deliveries of 2,650 to 2,750 homes at an average price ranging from $1.01 million to $1.03 million. Analysts had estimated 2,618 deliveries with an average delivery price of approximately $987,000. The company’s optimism for the future is reflected in their projected earnings of $3.32 per share on revenue of $2.57 billion.
Despite the challenge of rising interest rates, Toll Brothers remains confident due to their resilient resale inventory and strategically located land holdings. Douglas Yearley, chairman and chief executive of Toll Brothers, stated, “With our deep and well-located land holdings, industry-leading brand, healthy backlog, more efficient operations and balanced spec strategy, we are well positioned to capitalize on continued solid demand for new homes.”
Following this positive news, Toll Brothers shares rose by 1% after hours, building upon the 1.2% gain during regular trading hours, closing at $75.92 per share.