The stock of Toll Brothers (TOL) is up 2% after the luxury home builder issued financial results that exceeded Wall Street forecasts.
The Fort Washington, Pennsylvania based company reported earnings per share (EPS) of $2.25 U.S. on revenue of $1.95 billion U.S.
Those results beat analyst estimates of $1.78 U.S. a share and $1.90 billion U.S. in revenue.
Toll Brothers said that it delivered 1,927 homes for what was its fiscal first quarter and reported 2,042 signed contracts for future builds. Both those numbers also beat consensus forecasts.
Citing a strong start to the year, Toll Brothers raised its 2024 guidance, saying it now expects to deliver 10,000 to 10,500 homes, up from a previous estimate of 9,850 to 10,350 units.
For the current quarter, the company said it expects to deliver 2,400 to 2,500 homes.
Toll Brothers added that the average price of the homes it delivered was about $1 million U.S., significantly higher than the average price across America of $413,000 U.S.
The company’s results are being taken as a positive sign for the U.S. housing market. Housing is expected to remain strong in 2024 as mortgage rates continue to decline from a peak of nearly 8% last year.
Prior to today (Feb. 21), Toll Brothers’ stock had gained 86% over the past 12 months to trade at $103.55 U.S. per share.
