UPDATE: Toll Brothers Posts Higher FQ2 Profit

Toll Brothers TOL reported a rise in its fiscal second-quarter profit. Toll Brothers posted its quarterly profit of $65.2 million, or $0.35 per share, versus a year-ago profit of $24.7 million, or $0.14 per share. Its revenue climbed to $860.4 million versus $516 million. However, analysts were expecting earnings of $0.26 per share on revenue of $803 million. It homebuilding deliveries climbed 67% in dollars and 36% in units. The average price of homes surged to $706,000, from $577,000. Net signed contracts surged 7% in dollars and were flat in units. Toll Brothers' gross margin widened to 23.6% from 23.3%, while operating margin rose to 7.9% from 3.2%. For the full year, Toll Brothers reaffirmed that it projects to deliver 5,100 to 5,850 homes. Douglas C. Yearley, Jr., Toll Brothers' chief executive officer said, "Demand over the past year has been solid, although relatively flat, compared to the strong growth we initially experienced beginning in 2011, coming off the bottom of this housing cycle. We note that last cycle's recovery, in the early 1990's, began with a period of rapid acceleration, followed by leveling, before further upward momentum. We believe that we are in a similar leveling period in the early stages of the housing recovery with significant pent-up demand building." Toll Brothers shares gained 0.39% to close at $35.64 yesterday.