Toll Brothers Inc (NYSE: TOL) is trading up in extended hours on Tuesday after coming in ahead of Street estimates for its fiscal second quarter.
Toll Brothers stock up on impressive guidance
The stock is gaining also because the management issued upbeat guidance for the future. $TOL now expects to deliver up to 2,850 units in Q3 at an average price of between $950,000 and $960,000.The construction company forecasts about $14 of EPS this year versus analysts at $13.77. Douglas C. Yearley Jr. – the chief executive of Toll Brothers said in a press release today:
Demand for new homes continues to be driven by a resilient economy, favorable demographics and a lack of supply that reflects both the chronic underproduction of housing in the U.S. and the historically low levels of resale inventory caused by the lock-in effect of higher rates.
The New York listed firm ended its recent quarter with $7.38 billion of backlog – down 12% versus last year. Toll Brothers stock is now up roughly 40% versus its year-to-date low.
Notable figures in Toll Brothers Q2 earnings release
Toll Brothers ended its Q2 with $1.03 billion in cash and equivalents, as per the earnings report on Tuesday. According to the chief executive:
Our strategy of widening our price points to include more affordable luxury homes and increasing our supply of spec homes has helped us grow market share. It also enables us to reduce cycle times, improve inventory turns and leverage our fixed costs, driving revenue growth and higher operating margins.
In March, $TOL announced a 10% increase to its quarterly dividend to 23 cents per share.More By This Author:Palo Alto Networks Reports 15% Growth In Q3 Revenue: Stock Is Still Losing Robinhood Stock Price Forecast: Bank Of America Sees Upside To $24 Applied Materials Beats Q2 Estimates But Guidance Disappoints
