UPDATE: Toll Brothers FQ4 Earnings Miss Estimates

Toll Brothers

reported weaker-than-expected earnings for the fiscal fourth quarter. The Horsham, Pennsylvania-based company posted a quarterly profit of $131.5 million, or $0.71 per share, versus a year-ago profit of $94.9 million. Its revenue climbed 29% to $1.35 billion in the period. However, analysts were expecting earnings of $0.73 per share on revenue of $1.34 billion. Its pre-tax income jumped 25% to $188.5 million from $150.2 million. Home building deliveries jumped 22% to 1,807 units from 1,485 units. The average price of homes delivered climbed to $747,000 from $703,000 in the year-ago quarter. Net signed contracts jumped 16% in dollars and 10% in units, while backlog rose 3% in dollars and was even in units. Operating margin widened to 12.4% from 12.3%. Toll Brothers ended FY 2014 with 263 selling communities, versus 256 at FY 2014's third-quarter end, and compared to 232 at FYE 2013. During the quarter, Toll Brothers repurchased 2.94 million shares of its common stock at an average price of $30.78. Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "As the housing market progresses through the early stages of what we believe will be an extended and uneven recovery, we are pleased to report significant progress in growing our revenues and profits.” Toll Brothers shares gained 0.55% to close at $34.79 yesterday.