On Tuesday, Toll Brothers, Inc. (NYSE: TOL), the U.S. luxury homebuilder, announced its financial results for the third quarter ended July 31, 2017. The earnings for the third quarter beat estimates, however, revenue for the quarter slightly missed expectation.
According to the company, net income for the third quarter was $148.6 million, or $0.87 per share diluted, increasing from $105.5 million, or $0.61 per share diluted in the same period last year. The earnings result beats analysts’ estimates of $0.69 per share. Revenue for the third quarter rose 18.3% to $1.50 billion, which slightly missed estimates of $1.51 billion.
“We are very pleased with our financial performance this quarter. Earnings per share grew by 42.6% compared to a year ago, and we exceeded our guidance on Adjusted Gross Margin, SG&A, Other income and Income from unconsolidated entities, and our tax rate,” Martin P. Connor, the CFO of Toll Brothers, said in the statement on Tuesday.
“This was our twelfth consecutive quarter of year-over-year growth in contract dollars and units, highlighted by 20% or higher year-over year unit growth in each of the past four quarters. FY 2017’s third-quarter contracts, in both units and dollars, were the highest third-quarter totals in twelve years,” said Douglas C. Yearley, Jr., the Toll Brothers’ chief executive officer.
In the statement, the company also expects its deliveries for the fourth quarter to be between 2,275 and 2,575 units, with an average price of between $840,000 and $860,000. Adjusted Gross Margin for the fourth quarter was expected to improve 35 to 50 basis points compared with that of the third quarter.