Luxury home builder
on Tuesday reported earnings per share that beat consensus estimates. Buyer confidence is on the upswing, the company’s CEO said in a statement.
(ticker: TOL) reported first-quarter earning of $1.70 per diluted share on revenue of $1.78 billion. Consensus had expected earnings per share of $1.39 on revenue of $1.74 billion.
“We continue to project solid results in FY 2023,”
CEO Douglas Yearley, Jr., said in a statement. The company reaffirmed prior 2023 guidance calling for earnings per share of $8 to $9 and an adjusted gross margin of 27%. The company in 2022 reported earnings per share of $10.90 and an adjusted home sales gross margin of 27.5%.
Toll Brothers wasn’t immune to the broader housing market pullback, earnings show. The company reported 1,461 net signed contracts in the first quarter, down from 2,929 in the first quarter of 2022. But Yearley said the company has seen an increase in buyer demand amid improving confidence.
“We believe the recent pick-up in demand is a sign that the long-term fundamentals underpinning the housing market remain intact,” Yearley said in the statement, citing such factors as migration trends, low supply of existing homes, and long-term pent-up demand. “Notwithstanding near-term uncertainty in the economy, we expect these factors will continue to support the housing market well into the future,” Yearley said.
The news sent shares higher in after-hours trading. Toll Brothers shares were up about 3% after the close. The company will discuss its results on a conference call Wednesday at 8:30 a.m. ET.
Write to Shaina Mishkin at email@example.com