Dive Brief:
- Homebuilding giant Toll Brothers announced mixed results Wednesday for the second quarter of its fiscal year. The company reported earnings of $0.37 per share, up from $0.35 per share during Q2 of last year, and surpassing analysts' estimates of $0.35.
- Toll Brothers also reported its revenue fell 1% to $852.58 million, which failed to reach predictions of $861.15 million.
- The value of the company's net signed contracts rose 25%, and the average price of net signed contracts increased 13% to $826,000.
Dive Insight:
California topped the list of the company's most profitable markets — accounting for about 30% of signed Toll Brothers contracts.
After the earnings announcement, shares of the company fell due to the lackluster revenue results. However, Toll Brothers said it was optimistic about future quarters, and raised its average selling price forecast for 2015.
Executive Chairman Robert Toll told investors: "The economy and housing continue on parallel paths of recovery. It appears the housing market is on firm footing and heading in the right direction. As pent-up demand is released, we envision a gradual and elongated recovery for housing."
