Toll Brothers Reports Higher Deliveries and Home Prices

Toll Brothers reported higher home sales and higher pretax earnings for the third quarter ending in July 31.

The luxury homebuilder delivered 1,059 units in the third quarter, up 10% from a year ago. The average price of the homes was $612,000, up 6% from the second quarter.

“We currently estimate that we will deliver between 1,225 and 1,425 homes in fourth quarter,” according to chief financial officer Martin Connor.

The Horsham, Pa.-based builder has a backlog of 4,000 homes on order valued at $2.84 billion.

“Sales volumes and pricing power both increased this quarter from a year ago—a pattern consistent with recent quarters,” said Toll Brothers chief executive Douglas Yearly. “We believe the recovery is real and we are in the early stages of a rebound.”

The builder reported pretax income of $68.3 million in the third quarter, compared to $43 million in 3Q 2012.

However, a tax expense of $21.7 million reduced net income to $46.6 million in the third quarter. A year ago, a tax benefit of $18.7 million boosted 3Q 2012 net income to $61.6 million.