Toll Brothers Moves Higher After Q3 Earnings Beat

Toll Brothers Inc (NYSE: TOL) is moving higher after reporting a third-quarter earnings beat.

Earnings came in at $1 per share, beating estimates by 17 cents. Sales came in at $1.77 billion, beating estimates by $70 million.

"In our third quarter, we had strong revenues, gross margin, and earnings. While our third quarter contracts were down modestly, we are off to a good start in our fourth quarter. Low mortgage rates, a limited supply of new and existing homes, and a strong employment picture are providing tailwinds," said Chairman and CEO Douglas Yearly, Jr.

"We are focused on measured growth through geographic, product and price point diversification, and capital-efficient land acquisitions. We continue to expand the buyer segments that we serve with homes now ranging in price from $275,000 to over $3 million. Our balance sheet remains strong and our book value continues to grow. With ample liquidity, moderate leverage, and limited near-term debt maturities, we have the flexibility to execute on our balanced capital allocation strategy."

Highlights

• Home Sales Revenues Decreased 8%
• Net Signed Contract Value Decreased 8%
• Backlog Value Decreased 10%
• Home Sales Gross Margin Was 20.2%

Toll Brothers shares traded higher by 3.1% to $38.07 in Tuesday's after-hours session. The stock closed at $36.91 per share.