Toll Brothers Inc (NYSE:TOL) reported third-quarter financial results after the market close on Tuesday. Here’s a rundown of the luxury homebuilder’s report.
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Q3 Highlights: Toll Brothers reported third-quarter revenue of $2.95 billion, beating the consensus estimate of $2.85 billion, according to Benzinga Pro. The homebuilder reported third-quarter earnings of $3.73 per share, beating analyst estimates of $3.59 per share.
Home sales revenue was up 6% year-over-year as homes delivered climbed 5% year-over-year to 2,959. Net signed contract value was $2.41 billion at quarter’s end and backlog value was $6.38 billion, down 10% year-over-year.
Toll Brothers said it repurchased approximately 1.8 million shares during the quarter and ended the period with $852.3 million in cash and cash equivalents.
“While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base. In this environment, we continue to focus on strategically balancing price and pace in order to maximize profitability and returns,” said Douglas Yearley Jr., chairman and CEO of Toll Brothers.
What’s Next: Toll Brothers expects to deliver 3,350 homes in the fourth quarter at an average price of $970,000 to $980,000 per home. The company anticipates an adjusted home sales gross margin of 27% in the fourth quarter versus 27.5% in the third quarter.
On a full-year basis, Toll Brothers expects to deliver 11,200 homes at an average price of $950,000 to $960,000.
Toll Brothers executives will further discuss the quarter on an earnings call Wednesday morning at 8:30 a.m. ET.
TOL Price Action: Toll Brothers shares were down slightly in after-hours, trading at $132 at the time of publication on Tuesday, according to Benzinga Pro.
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