Toll Brothers Inc (NYSE: TOL) shares are trading higher in Tuesday's after-hours session on the heels of the company's third-quarter results. Here's a rundown of the report.
What Happened: Toll Brothers reported third-quarter revenue of $2.69 billion, which beat the consensus estimate of $2.41 billion, according to Benzinga Pro. The luxury homebuilder reported quarterly earnings of $3.73 per share, which beat analyst estimates of $2.81 per share.
Home sales revenues were up 19% year-over-year, homes delivered jumped 5%, net signed contract value increased 30% and contracted homes jumped 77%. Toll Brothers ended the quarter with a backlog of $7.9 billion, up 30% year-over-year.
"Demand remains solid as we start our fiscal fourth quarter. Based on these results and our expectations for the fourth quarter, we are raising our full year guidance for deliveries, adjusted gross margin and SG&A leverage, and now expect our return on beginning equity for fiscal 2023 to be approximately 22%," said Douglas Yearley Jr., chairman and CEO of Toll Brothers.
"Our third quarter performance reflects a market for new homes that continues to benefit from historically low levels of resale inventory, favorable long-term demographic trends, and the persistent underproduction of homes for well over a decade."
Toll Brothers expects to deliver between 2,650 and 2,750 units in the fourth quarter, up from 2,524 in the third quarter. Adjusted home sales gross margin is expected to come in at 28.5%.
Management will hold a conference call to discuss these results Wednesday morning at 8:30 a.m. ET.
TOL Price Action: Toll Brothers shares were up 1.45% after hours at $76.98 at the time of publication, according to Benzinga Pro.