UPDATE: Toll Brothers Posts Higher Q3 Profit

Toll Brothers (NYSE: TOL) reported better-than-expected third-quarter profit.The Horsham, Pennsylvania-based company posted quarterly net income of $97.7 million, or $0.53 per share, versus a year-ago profit of $46.6 million, or $0.26 per share.Its revenue climbed 53% to $1.06 billion. However, analysts were expecting earnings of $0.45 per share on revenue of $989.29 million.Toll Brothers sold 1,444 homes in the quarter, compared to 1,059 in the year-ago period. The average selling price increased 12% to $732,000.Net signed contracts dropped 4% to $949.1 million. Gross margin widened to 26.8%, from 25.1% in the year-ago period.Backlog climbed 9% in dollars to $3.1 billion, while backlog climbed 5% in units to 4,204 units.Toll Brothers ended the quarter with 256 selling communities, versus 252 at the end of year-ago quarter. It ended the quarter with around $386.7 million of cash and marketable securities.Douglas C. Yearley, Toll Brothers' chief executive officer said, "With pent-up demand still yet to be unleashed, we are growing community count in attractive locations. Several recent studies, including one last month in Builder Magazine, have rated our land portfolio highest among the major builders in terms of quality of school districts in which they are located. We believe this is a key factor for many of our buyers in selecting a home. We remain committed to finding the best land in the best locations for the best communities for our clients. We believe this leaves us well-positioned as the market returns to more typical levels of demand and new home production.”Toll Brothers shares gained 0.11% to close at $35.63 yesterday.