Luxury builder Toll Brothers Inc. (TOL) posted a third-quarter profit of $61.6 million, or 36 cents a share, for the period ending July 31.
That is up from earnings of $42.1 million, or 25 cents a share, a year ago and a reflection of increased demand for the builder’s luxury housing product.
Total revenue hit $554.3 million as Toll Brothers delivered 963 housing units, an increase of 39% when looking at unit sales from a year ago.
New contracts also rose 66% in value, with the firm signing $674.4 million in new home construction deals.
The average price of homes delivered by Toll Brothers rose to $576,000 in 3Q, compared to $569,000 a year earlier.
The builder ended the period with $877.4 million in cash and marketable securities and a bank credit line valued at roughly $819 million.
“We are enjoying the most sustained demand we’ve experienced in over five years,” said Toll Brothers CEO Douglas Yearley. “In the past three quarters, the values of our signed contracts were up 45%, 51% and now 66% compared to FY 2011.”
