Luxury home builder beats expectations and expects strong demand
- Toll Brothers stock rises after beating earnings expectations
- Strong start to the spring selling season
- Earnings of $2.25 per share on revenue of $1.95 billion
- Delivered 1,927 homes and reported 2,042 signed contracts
- CEO cites strong demand and raises full-year guidance
- Positive early sign for the housing market this year
Toll Brothers shares were rising in after-hours trading on Tuesday after the company reported earnings that beat analyst expectations. The luxury home builder also cited a “strong start to the spring selling season.” Toll Brothers on Tuesday reported earnings of $2.25 a share on revenue of $1.95 billion in its first quarter ended Jan. 31, surpassing analyst estimates of $1.78 a share on about $1.9 billion in revenue. Toll Brothers delivered 1,927 homes in its first quarter, and reported 2,042 signed contracts—more than the 1,864 deliveries and 1,964 contract signings consensus had expected. Shares closed up 1.3%, and were up 3% in after-hours trading on Tuesday. CEO Douglas C. Yearley, Jr., said in a statement that the company has seen a marked increase in demand since mid-January, coinciding with the start of the spring selling season. With a healthy job market, improving consumer sentiment, and low levels of resale inventory, Toll Brothers is optimistic that demand for new homes will remain strong. The company has raised its full-year guidance and now expects to deliver homes in a range of 10,000 to 10,500 units. For the second quarter, Toll Brothers expects to deliver 2,400 to 2,500 homes. The positive results and remarks from Toll Brothers are an early sign of a strong housing market this year, despite recent increases in mortgage rates. Toll Brothers’ buyers are more affluent and have significant equity in their existing homes, which insulates them from affordability concerns. The average price of homes delivered by Toll Brothers in the quarter was about $1 million, significantly higher than the average price of newly built homes. Toll Brothers will discuss its results on a call on Wednesday at 8:30 a.m. ET.
Factuality Level: 7
Factuality Justification: The article provides a straightforward report on Toll Brothers’ earnings report, including key financial figures, analyst expectations, and CEO statements. The information is presented objectively without significant bias or opinion. However, the article could benefit from more context on the housing market and Toll Brothers’ position within it.
Noise Level: 3
Noise Justification: The article provides relevant information about Toll Brothers’ earnings report, including key financial figures, market trends, and the company’s outlook. It stays on topic and supports its claims with data and quotes from company officials. However, it lacks in-depth analysis, accountability, or exploration of broader consequences beyond the company’s performance.
Financial Relevance: Yes
Financial Markets Impacted: Toll Brothers shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses Toll Brothers’ earnings report and its impact on the housing market. There is no mention of an extreme event.
Public Companies: Toll Brothers (TOL)
Key People: Douglas C. Yearley, Jr. (CEO)
Reported publicly:
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