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Toll Brothers tops estimates as deliveries fall and margins slip
Revenue fell 9.7% to $2.66 billion as deliveries dropped to 2,662 homes, but adjusted profit per share came in above the consensus estimate.
Toll Brothers beat fiscal third-quarter consensus estimates, even as a smaller delivery pace weighed on home-sales revenue, margins, and profit, according to Yahoo Finance. The builder reported total revenue declined 9.7% to $2.66 billion, while deliveries fell to 2,662 homes from 2,959.
Diluted earnings dropped to $2.97 per share from $3.73 but still exceeded the $2.93 consensus estimate. The company said the delivery slowdown hit revenue, while weaker margins and impairment charges also contributed to lower earnings.
Pricing and buyer activity were described as more resilient than the headline results. Toll Brothers delivered homes at an average price of $996,400, while net signed contracts increased 5% in both units and value to 2,508 homes worth $2.52 billion.
Toll Brothers reaffirmed full-year targets, including about $10.5 billion of home-sales revenue and a 26.1% adjusted home-sales gross margin. It narrowed expected deliveries to 10,500 to 10,600 homes and raised the lower end of its average delivered-price forecast to $995,000.