By Denny Jacob
Toll Brothers Inc. reported better-than-expected earnings and sales for the second quarter. Here’s what we looked at.
REVENUE: The luxury homebuilder reported net income of $220.6 million, up from a net income of $127.9 million a year earlier. Analysts polled by FactSet had expected $179.3 million.
REVENUE: The Fort Washington, Pennsylvania-based company reported revenue of $2.28 billion, compared to $1.93 billion in the same period last year. Analysts polled by FactSet had expected $2.08 billion.
BUYBACK: Toll Brothers announced that on May 17 its board of directors renewed authorization for the company to repurchase its common stock for up to 20 million shares, or approximately $900 million at current market prices.
HOW TO GUID: The company announced that its net contract value totaled $3.1 billion, taking its second-quarter backlog to a record $11.7 billion and 11,768 homes. Based on the strength of its backlog, Toll Brothers said it maintained its full-year guidance of 20% revenue growth.
COMMENT: “While demand is still solid, it has weakened over the past month from the unprecedented pace of the past two years as buyers adjust to higher mortgage rates and other macroeconomic conditions. However, the many fundamental drivers of housing demand remain firmly in place,” Chief Executive Douglas Yearley Jr. said in prepared remarks.
Write to Denny Jacob at [email protected]