Apart from lower sales in California, Horsham’s Toll Brothers has reported a successful second fiscal quarter, beating expectations and reassuring nervous investors of good days to come in the Golden State, writes Tom Terrarosa for TheStreet.

The luxury-home developer reported earnings of 51 cents per share on revenue of $1.12 billion for its fiscal second quarter, beating analyst expectations of 46 cents. Toll Brothers delivered 1,304 homes in the quarter, showing a 31 percent increase in dollar terms, as well as a nine percent rise in units compared to the same period last year.

The news had an immediate impact on the company’s stock, reversing its downward trend and boosting the share price by more than eight percent.

Management followed the positive results with further optimism, assuring analysts that the California market was heading toward improvement. One of the steps to achieve this is the planned expansion of the company’s Southern California living segment in areas such as Newport Beach, Pasadena, and Santa Monica.

“Toll Brothers has done a remarkable job in apartments,” said Jim Cramer, TheStreet’s founder. “People don’t think of them as apartments, but in the city initiative they have, they are great selectors of urban real estate. Don’t just think of them as a homebuilder.”

Management also emphasized that they do not see the possible interest rate hike by the Federal Reserve as a major issue for the company’s future, as an uptick in mortgage rates will not cause them to “close up shop.”

“The housing stocks are totally subject to the whims of whoever speaks next from the Fed,” said Cramer. “But this has been a remarkable quarter.”

Read more about Toll Brothers’ results at TheStreet by clicking here.

Read MONTCO Today’s previous coverage of Toll Brothers’ results by clicking here.