Luxury home builder Toll Brothers today reported record third-quarter earnings for the fiscal period ending July 31.
The company’s third-quarter net income of $215.5 million was the highest for any quarter in its history. Net income grew 103 percent from the same period a year ago. Earnings per share was $1.27, up 92 percent from the same period last year.
Quarterly revenues were a record $1.56 billion, up 54 percent from 2004, the company said. Third-quarter home-building revenues totaled $1.54 billion, for 2,310 homes, and revenues from land sales totaled $10.6 million.
The company’s third-quarter contracts of $1.92 billion (2,746 homes) grew 19 percent from the same period last year.
Robert I. Toll, chairman and chief executive officer, attributed the record results to the company’s strong land position and pricing power in its affluent markets. “While the supply of buildable lots seems increasingly to be constrained by governmental regulation, demographics-driven demand continues to grow,” he said.
Toll said the company is on track for a 13th consecutive year of record earnings.
“In recent weeks, it appears that bubble mania and reports of a strengthening employment picture with associated interest rate fears have rattled investors. We believe strong job numbers and an improving economy are positive factors for the housing industry, in general, and our luxury niche in particular,” toll said.
Toll Brothers serves move-up, empty-nester, active-adult and second-home home buyers and operates in 20 states.
Toll Brothers shares (NYSE:TOL) traded at $49.51 a share this morning.
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