Toll Brothers Inc. (TOL) on Tuesday reported fiscal third-quarter profit of $193.3 million. The Horsham based company said it had net income of $1.26 per share. The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.03 per share. The home builder posted revenue of $1.91 billion in the period, also topping Street forecasts. Six analysts surveyed by Zacks expected $1.81 billion.
Toll Brothers Inc. surged after the biggest U.S. luxury-home builder reported rising orders, revenue and backlog — setting the stage for further earnings growth — as the supply of properties on the market remains tight and the labor market stays strong, writes Prashant Gopal for Bloomberg.
Toll’s shares rose as much as 15 percent before the start of regular trading and were trading at $38.05 at 8:45 a.m. in New York.
The Horsham, Pennsylvania-based homebuilder is among companies benefiting from a U.S. unemployment rate of 3.9 percent and an aging millennial population moving from renting to owning. Wealthy Americans are feeling confident, and that’s a big boost to Toll, according to Alex Barron, an analyst with the Housing Research Center in El Paso, Texas.
“Do you see any signs that the economy is slowing?” Barron said in an interview. “So why would wealthy people be scared to buy?”
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