UPDATE: Toll Brothers Beats Q1 Expectations

reported stronger-than-expected earnings for the first quarter. The Horsham, Pennsylvania-based company posted quarterly net earnings of $81.3 million, or $0.44 per share, compared to $45.6 million, or $0.25 per share, in the year-ago quarter. Its revenue climbed 33% to $853.5 million from $643.7 million. However, analysts were projecting earnings of $0.29 per share on revenue of $779.6 million. Pre-tax income jumped to $124.0 million from $71.2 million. Number of homes finished climbed 18% in units to 1,091 in the quarter, while the average selling price increased 13% to $782,300. Backlog climbed 2% in dollars to $2.74 billion, while backlog in units came in approximately flat at 3,651 units, versus FY14's Q1-end backlog. Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "Momentum continues to build as we begin the spring selling season. In our first quarter, we achieved 24% growth in the dollar value of signed contracts. Since the start of the second quarter, the number of signed contracts is up 13%." The executive added, "We continue to benefit from our ongoing geographic diversification strategy. While we remain the dominant luxury builder in the suburban Washington, DC to Boston corridor, our growth in the West and South and in urban centers has expanded our brand into more locations and product lines." For FY15, Toll Brothers now projects to deliver 5,200 to 6,000 homes at an average price of $725,000 to $760,000, versus prior outlook of 5,000 to 6,000 homes at an average price of $710,000 to $760,000. Toll Brothers shares fell 1.46% to close at $37.10 yesterday.