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Toll Brothers’ Q4 Results Beat Estimates (TOL)

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Toll Brothers IncShares of Toll Brothers Inc. (NYSE: TOL), a Horsham, Pennsylvania-based company engaged in the design, construction and marketing of single-family detached and attached homes in luxury residential communities, are climbing in today’s trading after the company announced better than expected fourth-quarter financial results.

Toll Brothers’ gross margin, excluding charges, for the quarter was 23.7%. Martin Connor, CFO of Toll Brothers, said in a statement that the company believes that earnings growth can come from increasing its community count but that significant margin improvement will only be achieved once it sees the return of some urgency to the market, which should lead to increased sales prices and paces.


Toll Brothers reported earnings of $15 million, or $0.09 per share for the fourth quarter ended October 31. Analysts were expecting the company to report earnings of $0.05 per share.

Toll Brothers’ revenue for the quarter improved 6% to $427.8 million, beating analysts’ estimate of $422.9 million. The company closed the same of 757 homes in the quarter, representing an increase of 8% over the same period in the previous year.

During the fourth quarter, contracts for new homes climbed 15% to 644, with a value of $390 million. The company’s average price of new homes under contract rose to $606,000 in the fourth quarter from $565,000 reported for the same period in the previous year.

The company ended the fourth quarter with a backlog of 1,667 homes under order, representing 12% over the same period in the previous year. The company’s backlog was valued at $981.1 million, representing an increase of 15%.

In fiscal 2012, Toll Brothers expects to sell between 2,400 and 3,200 homes. The company expects an average sales price of $550,000-$575,000 per home in fiscal 2012.

Toll Brothers shares are currently trading 1.30% higher at $21.01 on volume of 1.49 million. The stock has risen 10.32% this year.

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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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