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Toll Brothers quarterly profit more than doubles

Toll Brothers, the largest U.S. luxury home builder, said quarterly profit more than doubled as it sold more homes at higher prices.

The company, whose homes can cost more than $2 million, has been able to perform better over the past few quarters than most large U.S. home builders as its buyers were less affected by a recent rise in mortgage rates.

Read MoreHome prices jump in March

Toll Brothers said its average selling price rose about 22 percent to $706,000 in the second quarter ended April 30.

A construction worker climbs on the roof of a home in Boca Raton, Florida.
Getty Images
A construction worker climbs on the roof of a home in Boca Raton, Florida.

The company received orders for 1,749 homes in the quarter, nearly unchanged from the second quarter last year.

"We are in a leveling period in the early stages of the housing recovery with significant pent-up demand building," Chief Executive Douglas Yearley said in a statement on Wednesday.

Read MoreSigns of life in the home-equity loan market

The company's net income rose to $65.2 million, or 35 cents per share, in the quarter from $24.7 million, or 14 cents per share, a year earlier.

Revenue jumped 67 percent to $860.4 million in the period -well into the spring selling season, which is to homebuilders what the holiday shopping season is to retailers.

Toll's shares closed at $35.64 on the New York Stock Exchange on Tuesday. They have dropped about 2 percent in the past year, compared with an about 7 percent drop in the Dow Jones U.S. Home Construction index.

By Reuters

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