Toll Brothers Q4 Profit Misses Expectations

reported weaker-than-expected earnings for its fiscal fourth quarter on Tuesday. The Horsham, Pennsylvania-based company reported quarterly net income of $147.2 million, or $0.80 per share, versus $131.5 million, or $0.71 per share, in the year-ago period. Its revenue climbed to $1.44 billion from $1.35 billion. However, analysts were expecting earnings of $0.83 per share on revenue of $1.43 billion. Pre-tax income rose to $217.5 million from $188.5 million. Home building deliveries increased to 1,820 units from 1,807 units. The average price of homes delivered climbed to $790,000 in the latest quarter, from $747,000 in the year-ago quarter. Net signed contracts surged 12 percent in units to 1,437 units in the recent quarter. Toll Brothers ended FY 2015 with 288 selling communities, versus 263 selling communities at FYE 2014. Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "The housing market continues on a pace of steady growth and we are well-positioned to take advantage of this growth…We enter FY 2016 with a backlog up 29% in dollars and are experiencing a housing market in many regions that is healthier than a year ago. Therefore, we believe FY 2016 will be a year of strong growth in revenues and profit." Toll Brothers projects full-year revenue of $4.5 billion to $5.6 billion. Toll Brothers shares gained 0.03 percent to close at $37.50 yesterday.