Toll Brothers, Inc (NYSE:TOL) traded slightly higher in early deals today, after Tuesday night’s earnings beat albeit concern over the impact of interest rates appears to cap enthusiasm around the stock.
The luxury house builder delivered 2,524 units in the quarter, up 5% year-over-year, as it generated revenue of $2.69 billion, up from $2.49 billion a year earlier and above expectations of $2.41 billion.
Net income came in at $414.8 million, $3.73 per share, up significantly from $273.5 million, $2.35 per share a year ago and easily topping expectations of $2.81 per share.
Nevertheless, the stock was up a meagre 0.45% in Wednesday’s premarket, trading at US$76.26, valuing the business at just over US$8.3 billion.
Looking ahead, Toll Brothers forecast fourth-quarter deliveries between 2,650 and 2,750 homes at an average price of $1.01 million to $1.03 million. That’s more than the estimated 2,618 deliveries and $987,000 average price predicted by analysts.
“While rising rates remain a challenge, they further cement the lock-in effect that has kept resale inventory at historically low levels,” CEO Douglas Yearley said in a statement.
"With our deep and well-located land holdings, industry-leading brand, healthy backlog, more efficient operations and balanced spec strategy, we are well positioned to capitalize on continued solid demand for new homes.”