© Reuters. Toll Brothers reports Q3 beat, provides guidance
Toll Brothers (NYSE:) shares rose Wednesday after the company reported its Q3 results.
of $3.73 came in better than the consensus estimate of $2.84. Revenue grew 19% year-over-year to $2.69 billion, beating the consensus estimate of $2.4B.
The company delivered 2,524 homes during the quarter, representing a 5% year-over-year increase. At the end of Q3, backlog value was $7.9B, down 30% compared year-over-year, with 7,295 homes in backlog, representing a decline of 32%.
“Demand remains solid as we start our fiscal fourth quarter. Based on these results and our expectations for the fourth quarter, we are raising our full year guidance for deliveries, adjusted gross margin and SG&A leverage, and now expect our return on beginning equity for fiscal 2023 to be approximately 22%,” said CEO Douglas Yearley.
For Q4/23, the company expects deliveries in the range of 2,650-2,750 units, with an average price of $1.005-$1.025 million.
For the full year, the company expects deliveries of 9,500-9,600 units, with an average price of $1.005-$1.015M.
Raymond James analysts added TOL stock to their list of analysts’ current favorites.
“We continue to believe TOL is perhaps the best risk/reward opportunity among all the homebuilders in this environment,” the analysts wrote.
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