Toll Brothers Inc. posted its fiscal fourth-quarter earnings that exceeded analysts’ expectations. Demand, however, may still facing headwinds due to rising interest rates.
The homebuilder’s earnings came in at $5.63 per share, handily topping the $4.01 per share expected by analysts polled by FactSet. The figure is also higher than the year-ago quarter’s $3.02 per share.
Revenue increased to $3.71 billion in the quarter from $3.04 billion a year ago, and surpassed analysts’ expectations of $3.17 billion. Home sales revenue increased +21% y/y to $3.6 billion. The company delivered 3,765 units in the quarter, higher than 3,341 units delivered a year ago. Net signed contracts, however, were down -60% in volume and -56% in value in the fourth quarter, in a rising interest rate environment.