Toll Brothers Reports Mixed Q1, Shares Trading Nearly Flat

Shares of Toll Brothers Inc TOL were trading lower by just 0.12 percent after the company reported its first quarter results.

Toll Brothers said it earned $0.40 per share in the first quarter on revenue of $928.566 million. Wall Street analysts were expecting the company to earn $0.41 per share on revenue of $916.3 million.

Net income for the quarter fell to $73.2 million from $81.3 million in the same quarter a year ago. Home building deliveries rose 9 percent in dollars but fell 3 percent in units from a year ago.

Net signed contracts of $1.09 billion and 1,250 units rose 24 percent in dollars and 18 percent in units from a year ago while the average price of net signed contracts rose to $869,600 from $821,500.

Backlog of $3.66 billion and 4,251 units rose 34 percent in dollars and 16 percent in units, while the average price of homes in backlog was $861,600.

Looking forward to fiscal 2016, Toll Brothers expects its revenue to be $4.6 billion to $5.4 billion versus Wall Street's estimates of $5.11 billion.

Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "Our business remains solid as customers continue to demonstrate a healthy appetite for luxury homes. First quarter contracts and backlog were up 24% and 34%, respectively, in dollars, compared to one year ago. Deposits and contracts signed in the first three weeks of February, the start of our second quarter, were basically flat compared to the prior year. This is understandable given the recent stock market decline and global economic uncertainty. Positively, traffic was up 13% over the same three weeks and appears to be improving in quality, which gives us reason for optimism for the balance of the spring selling season.