Toll Brothers Profit Beats Estimates As Sales Fall Slightly Short

Homebuilder Toll Brothers Inc. said Tuesday it had net income of $148.6 million, or 87 cents a share, in the third quarter to end July, up from $105.5 million, or 61 cents a share, in the year-earlier period. Revenue rose to $1.50 billion from $1.27 billion. The FactSet consensus was for EPS of 69 cents and revenue of $1.51 billion. Deliveries rose 26% to 1,899 units. The average price of homes delivered was $791,400, compared to $842,700 a year ago, mostly due to an expected change in mix. The company said it now expects to deliver between 7,000 and 7,300 homes in fiscal 2017, up from earlier guidance of 6,950 to 7,450 units, at an average delivered price of $800,000 to $825,000 a home. Shares fell 0.7% premarket, but have gained 23.4% in 2017, while the S&P 500 has gained 8.4%.