HORSHAM, Pa. (AP) — Toll Brothers Inc.'s net income increased in its fiscal third quarter, as the luxury homebuilder delivered more homes and average sales prices rose.
But the Horsham, Pennsylvania-based company also reported on Wednesday that its new home contracts declined in the May-July quarter from a year earlier. Shares in the builder fell 4.4 percent in in afternoon trading.
Toll Brothers said completed sales vaulted 36 percent from the prior-year period to 1,444 homes, while signed contracts fell 6 percent to 1,324 homes.
In a statement, CEO Douglas Yearley noted that pent-up demand "has yet to be unleashed," but added that he still believes housing is recovering.
All told, the company reported net income of $97.7 million, or 53 cents per share, for the three months ended July 31. That compares with net income of $46.6 million, or 26 cents per share, in the prior-year period.
Revenue in the latest quarter jumped 53 percent to $1.06 billion from $689.2 million.
The results topped Wall Street expectations. The average estimate of analysts surveyed by FactSet was for earnings of 45 cents per share and revenue of $981.7 million.
Toll shares slid $1.58 to $34.05 in afternoon trading. The stock is down about 8 percent this year.