Horsham’s Toll Brothers is feeling the benefits of a recovering housing market by reporting growth in both profits and revenue for the third quarter, writes Austen Hufford for The Wall Street Journal.
The company revealed that, in general, homeowners have been building up home equity since the financial crisis, and could soon move to newer homes.
The company narrowed its previously projected annual revenue guidance from $4.76 billion to $5.36 billion to a range of $4.96 billion to $5.27 billion, beating the market estimate of $5.04 billion.
“The solid economy and employment picture are also benefiting our target customers,” said executive chairman Robert I. Toll.
Toll Brothers also posted a profit of $105.5 million, or 61 cents a share, compared to 66.8 million or 36 cents a share last year. The third-quarter results were evenly balanced across the country as every region saw growth.
Revenue from Toll’s City Living division declined by 13 percent to $52.5 million, despite the average price per unit increasing to $3.8 million from $756,400 due to the total number of units dropping.
Read more about Toll Brothers’ third-quarter results in The Wall Street Journal by clicking here.