Real Estate

Toll Brothers profit tops estimates as home sales, prices rise

Key Points
  • The company now expects full-year revenue of between $6.76 billion and $7.22 billion, compared with an earlier range of between $6.64 billion and $7.31 billion.
  • Pennsylvania-based Toll booked orders for 2,316 homes in the quarter, up 7.1 percent year-over-year, while selling 2,246 homes, 347 more than a year earlier.
  • Toll shares surged in premarket trading following the news.
Adam Jeffery | CNBC

U.S. luxury home builder Toll Brothers on Tuesday topped Wall Street estimates for quarterly profit, as stronger housing demand helped it sell more homes at higher prices.

Toll shares jumped 10 percent on Tuesday.

The company now expects full-year revenue of between $6.76 billion and $7.22 billion, compared with an earlier range of between $6.64 billion and $7.31 billion.

The average price of a Toll Brothers home rose to $851,900 in the third quarter ended July 31, from $791,400 a year earlier.

Pennsylvania-based Toll booked orders for 2,316 homes in the quarter, up 7.1 percent year-over-year, while selling 2,246 homes, 347 more than a year earlier.

Net income rose to $193.3 million or $1.26 per share from $148.6 million or 87 cents per share a year earlier.

Revenue jumped 27.3 percent to $1.91 billion.

Analysts on average had expected earnings of $1.03 per share and revenue of $1.81 billion, according to Thomson Reuters.

Correction: Reuters updated this story to reflect that Toll Brothers "raised" FY revenue.