SEATTLE (Reuters) - Luxury homebuilder Toll Brothers Inc <TOL.N> said on Tuesday said it expected fourth quarter revenue to drop 30 percent, but blew past Wall Street's expectations by nearly $100 million, and the company's shares rose 5.4 percent in after-hours trading.

Toll Brothers says buyers signed 42 percent more contracts to buy new homes in its fourth fiscal quarter, but revenue dropped because the luxury builder has fewer communities around the country.

Executive compensation - particularly bonuses - has been the source of much fury both on Capitol Hill and on Main Street. The Obama administration has also set it sights on these pay packages, most recently by cracking down on executive compensation at bailed-out firms. Given the attention being paid to multi-million dollar paydays, CNBC.com enlisted the help of Equilar, an executive compensation research firm, to find out which executives received the most massive bonus payouts of the decade.

Continued signs of stabilization in the market, from a reversal of falling home price to a tightening in credit spreads, have analysts optimistic about the builders' future. No wonder the sector is hot.

New home sales rose a tepid 0.7 percent last month, missing Wall Street expectations and providing more evidence the housing market recovery remains tentative.

Stocks resumed their ascent Friday, after snapping the week's winning streak on Thursday, as investors braced for a volatile day due to quadruple witching.

Toll Brothers Inc. says it lost $472.3 million in its fiscal third quarter, as the luxury homebuilder took a large tax hit.

Though sales of existing homes appear to be bouncing back— as cheap foreclosure properties attract buyers—the market for new homes is stuck below sea level.

The market for luxury homes isn’t as bad as it appears, Robert Toll, CEO of Toll Brothers told CNBC.

Toll Brothers Inc. said Tuesday buyers signed 42 percent more contracts for new homes in its fourth fiscal quarter, but revenue dropped because the luxury builder has fewer communities around the country.

The Chinese market is likely to fall 25 percent, taking U.S. stocks with it, with the S&P 500 possibly falling below 800, Robin Griffiths, technical strategist at Cazenove Capital, said Monday. But then U.S. indexes will rise again for a substantial amount of time, with the Dow estimated to rise to 1,250, he added.

Shares of homebuilders slid Wednesday as new home sales dropped for the first time in five months.

Fresh signs that the economy is stabilizing  emerged Tuesday in reports that home construction rose more than expected last month and wholesale prices remain in check.

Stocks snapped a four-day winning streak Wednesday after a trio of weak economic reports tarnished the shine on recovery hopes.   Wal-Mart led the few Dow gainers after an analyst's remarks.

Stocks pared their losses Wednesday after a trio of weak economic reports got the market off to a lower start.  Wal-Mart led Dow gainers after an analyst's remarks.