Shares of Toll Brothers Inc. (NYSE: TOL) have edged higher in trading today after the homebuilder reported its fourth-quarter financial results. The company’s fourth-quarter profit jumped thanks to a large tax benefit. TOL’s results have once again highlighted the fact that the housing market is seeing a strong recovery.
For the quarter ended October 31, 2012, TOL reported net income of $411.4 million, or $2.35 per share, compared to $15 million, or $0.09 per share reported for the same period in the previous year. TOL’s fourth-quarter results included a tax benefit of $350.7 million.
Revenue for the quarter jumped 48% to $632.8 million, beating the consensus forecast of $566.7 million. The company’s net signed contracts for the quarter stood at $684.1 million. In unit terms, net signed contracts in the fourth quarter were 1,098 units. At the end of October 31, 2012, the company had a backlog of 2,569 units, up 54% over the same period in the previous year. In dollar terms, the company’s backlog at the end of the fourth quarter was $1.67 billion.
For fiscal year 2012, TOL reported net income of $487.1 million, or $2.86 per share, compared to net income of $39.8 million, or $0.24 per share reported in fiscal year 2011. Revenue for the full year was $1.88 billion.
Douglas C. Yearley, Jr., CEO of Toll Brothers, said that pent-up demand, rising home prices, low interest rates, and improving consumer confidence motivated buyers to return to the housing market in FY 2012. Yearley noted that as household formations accelerated and unsold home inventories dropped to record lows, the industry took further steps towards a sustained housing recovery.
TOL shares rose to an intra-day high of $34 today. At last check, the stock was trading 1.33% higher at $32.86 on above average volume of 4.09 million.
Year-to-date, TOL shares have gained nearly 60%, outperforming the S&P 500.
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