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Toll
Brothers said that its orders, a key metric of future revenue
for homebuilders, rose 20.3 percent to 1,728 homes in the fourth
quarter ended Oct. 31.
"We are encouraged as we look to FY 2017," Chief Executive
Douglas Yearley said in a statement. "We are seeing positive
demand trends in many regions."
Toll Brothers said the average price of homes sold increased to
$834,300 in the quarter from $789,700 a year earlier, while the
number of homes sold rose to 2,224 from 1,820.
The company, which has been building luxury homes for nearly
half a century, said it expects to deliver between 1,000 and
1,250 home at an average price of between $750,000 and $780,000
in the current quarter.
Toll Brothers said its revenue rose 29.1 percent to $1.86
billion in the fourth quarter.
Net income fell to $114.4 million, or 67 cents per share, from
$147.2 million, or 80 cents per share.
Excluding $121.2 million in warranty charges mainly related to
older stucco homes and including some inventory writedowns, the
company earned $1.15 per share.
On that basis, analysts on average were expecting a profit of 99
cents per share and revenue of $1.79 billion, according to
Thomson Reuters I/B/E/S.
The company said it expects the purchase of Idaho-based Coleman
Real Estate Holdings Llc to hurt its 2017 adjusted gross margin
by 30-40 basis points. It bought Coleman Homes in November for
an undisclosed amount.
Toll Brother's shares had fallen 8.5 percent this year through
Monday, slightly less than the Dow Jones U.S. home construction
index's <.DJUSHB> 8.8 percent decrease.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Savio
D'Souza)
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