Nicholas Yulico
Toll Brothers' (TOL Quote - Cramer on TOL - Stock Picks) Wednesday reported quarterly revenue that topped estimates, and the company's CEO cited growing pent-up demand from homebuyers who have postponed buying homes over the past three years.
Toll's homebuilding revenue totaled $797 million in the third quarter, down 34% from a year ago but better than the $746 million analysts expected, according to Thomson Reuters. Toll, in its preliminary results, also said new orders fell 31% from a year ago. While results remain dismal right now, CEO Bob Toll offered some signs of hope. "When we run promotions and work the phones for a market, our rate of deposits improves significantly," he said in a statement. "We believe the consumer's confidence in the housing market is the key to its recovery," Toll said. While cancellations of orders as a percentage of backlog remained high relative to history, Toll said the raw number of cancellations in the quarter were the lowest total in over two years, which he called a "positive sign." Toll's stock edged up 18 cents, or 0.9%, to $20.82 in recent trading Wednesday morning.
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