Toll Brothers (TOL) recorded 2015 first-quarter net income of $81.3 million, or $0.44 per share, compared to net income of $45.6 million, or $0.25 per share, in first quarter 2014.
The luxury homebuilder posted revenues of $853.5 million. Home building deliveries of 1,091 units rose 33% in dollars and 18% in units, compared to 2014's first quarter.
This beat analyst earnings per share expectations by $0.14 and revenue by $72.59 million.
The average price of homes delivered was $782,300, compared to $693,600 in 2014's first quarter.
"Momentum continues to build as we begin the spring selling season. In our first quarter, we achieved 24% growth in the dollar value of signed contracts. Since the start of the second quarter, the number of signed contracts is up 13%,” said Douglas Yearley, Jr., Toll Brothers' CEO.
The homebuilder updated its guidance and now expects to deliver between 5,200 and 6,000 homes in 2015 at an average price of $725,000 to $760,000, compared to previous guidance of 5,000 to 6,000 homes at an average price of $710,000 to $760,000. This compares to 5,397 deliveries in 2014 at an average price of $725,000.
"We are encouraged by the latest data from the Labor Department indicating strong job and wage growth momentum and also the Census Bureau's recent monthly reports showing solid growth in household formations, all of which are good for housing demand,” said Robert Toll, executive chairman.
"More jobs and better jobs should boost household formations and provide a basis for stronger housing demand. Another positive data point comes from the Conference Board, which said consumer confidence in January reached its highest level since August 2007. We believe these positive macroeconomic trends, coupled with recent Federal initiatives to increase mortgage availability, should support housing's recovery,” Toll added.
