Toll Brothers' quarterly revenue jumped nearly 31 percent, beating analysts' estimates, as the company sold more luxury homes at higher prices, mainly in California.
Shares of Toll Brothers, which mostly builds single-family homes that could cost more than $2 million, gained more than 8 percent on Tuesday.
New U.S. single-family home sales rose more than expected in April and the median price surged, suggesting the housing market recovery was gaining traction.
Toll Brothers' orders, a key metric of future revenue for homebuilders, increased 3.2 percent to 1,993 homes in the second quarter — a period well into the spring selling season, which is to homebuilders what the holiday shopping season is to retailers.