Toll Brothers Profit Up 93% on Soaring Demand

Toll Brothers Inc. (TOL) beat Wall Street's expectations on Thursday with a 93 percent surge in profit for its latest quarter, helped by soaring demand for its houses.

The Huntingdon Valley-based luxury-home builder also boosted its fiscal 2005 earnings estimate.

After the news, shares of Toll Brothers climbed $3.84, or 7.1 percent, to $57.95 Thursday on the New York Stock Exchange (search).

For the fiscal fourth quarter ended Oct. 31, Toll Brothers reported income of $180.6 million, or $2.22 a share, compared with $93.4 million, or $1.19 a share, in the same period a year earlier.

Revenue soared 62 percent to $1.46 billion from $903.4 million, driven by a surge in contracts. Toll Brothers said contracts rose 51 percent to $1.53 billion.

Analysts surveyed by Thomson First Call were looking for earnings of $1.97 per share on sales of $1.43 billion in the latest period.

The company had home-building revenue of $1.44 billion, or 2,395 homes, up from $893.7 million, or 1,578 homes, a year ago. Revenue from land sales totaled $1.6 million, down from $6.4 million a year earlier.

For all of fiscal 2004, Toll Brothers had net income of $409.1 million, or $5.04 a share, up 57 percent from $259.8 million, or $3.44 a share, a year earlier. Revenue for the year increased 40 percent to $3.89 billion from $2.78 billion in fiscal 2003.

Toll Brothers said it expects fiscal 2005 net income to rise at least 40 percent, compared with a previous estimate for an increase of at least 30 percent. The company also anticipates home-building revenue of between $5 billion and $5.35 billion for fiscal 2005.