By By Ben Glickman
Toll Brothers, the luxury homebuilder based in Fort Washington, Pennsylvania, reported a decrease in fourth-quarter profit, despite experiencing robust demand in its contracts for new homes.
In the three months ended October 31, the company generated a profit of $445.5 million, or $4.11 per share. This is a decline from the previous year’s profit of $640.5 million, or $5.63 per share. Although the earnings fell, they exceeded analysts’ expectations of $3.72 per share, according to FactSet.
While revenue dropped nearly 19% to $3.02 billion, it still outperformed the projected figure of $2.78 billion. The number of deliveries also decreased from 3,765 to 2,755 compared to the previous year, surpassing both the company’s guidance and analysts’ expectations (2,733).
Toll Brothers disclosed that the average price for contracts decreased by 11%. However, there was a notable increase of 72% in the number of contract units as compared to the previous year.
Douglas Yearley, Jr., the Chief Executive of Toll Brothers, expressed that the company had experienced continuous strong demand throughout the fiscal fourth quarter. He also pointed out that with resale inventories at historic lows, there is an anticipated rise in demand in the coming year.
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