This brought its’ share price down by 1.8 percent to $37.55 in Tuesday’s premarket trading. Revenue was affected by the builder’s new line of cheaper T-Select homes aimed at the growing millennials market.
These helped bring Toll Brothers’ usual average selling price down by 6.1 percent to $791,400 for the third quarter ended July 31, but sales increased by 26 percent to 1,899 units.
According to the company, the results were also impacted by a recall from a major lumber manufacturer which delayed the delivery of 150 homes.
Toll Brothers followed up the results by narrowing its full year outlook. The company now expects to sell between 7,000 and 7,300 homes in the fiscal year ending October, with revenue of between $5.6 billion and $6.0 billion. However, the company emphasized the growing demand for housing.
“The unemployment rate is at a 15-year low, the economy is growing, the stock market is strong, and home prices continue to rise,” said Chief Executive Douglas Yearley.
Read more about Toll Brothers’ results at The New York Times by clicking here.