Toll Brothers, the luxury-home-building giant based in Horsham, reported second-quarter revenues that far exceeded forecasts, writes Joshua Jamerson of the Wall Street Journal.

Low interest rates and rising home equity values were big factors in Toll Brothers’ success.

“We continue to believe the drivers are in place to sustain the current housing market’s slow but steady growth,” Robert I. Toll, executive chairman told Jamerson. “The industry is still not building enough homes to meet the demand that current demographics imply are needed.”

According to Jamerson, the company narrowed its annual revenue guidance to a range of $4.76 billion to $5.36 billion; the previous projection was $4.6 billion to $5.4 billion. Analysts polled by Thomson Reuters predicted $5.01 billion, on average, in revenue for the year.

For the quarter ended April 30, Toll posted a profit of $89.1 million, or 51 cents a share, up from $67.9 million, or 37 cents a share, in the year-prior period. Analysts surveyed by Thomson Reuters were expecting earnings of 46 cents a share.

Revenue rose 31 percent to $1.12 billion. Analysts estimated $1.04 billion in revenue, according to FactSet.

Results in the second quarter were driven by growth in the West, including Denver, Seattle, Reno, and Las Vegas. On the East Coast, the company pointed to solid results from New Jersey, Northern Virginia, Maryland, and Pennsylvania.

Revenue from Toll’s City Living division, which builds urban apartments, increased more than fourfold to $54 million. The segment, much smaller than Toll’s other units, represents a new segment for the company as the U.S. continues to urbanize.

Click here to read more about Toll Brothers in the Wall Street Journal.