Toll Brothers (TOL) - Get Toll Brothers Inc. Report shares were steady after hours as the luxury-home builder reported stronger-than-expected fiscal-fourth-quarter earnings and revenue.
For the quarter ended Oct. 31, the Horsham, Pa., company reported profit of $1.41 a share, down 32% from $2.08 in the year-earlier quarter. Revenue declined 3.1% to $2.38 billion from $2.46 billion.
A survey of analysts by FactSet was looking for profit of $1.29 a share on revenue of $2.19 billion.
Toll Brothers shares were little changed after hours. They'd finished the regular session up 1.3% at $41.43.
Buyer demand steadily improved through the year, Chairman and Chief Executive Douglas Yearley Jr. said in a statement.
Fourth-quarter contracts were up 18% in units and 12% in dollars.
The company ended the quarter with more than $3 billion of cash and undrawn bank credit facilities and "with no public or bank debt maturities in the next 24 months," he said.
He called the economic environment "positive," noting that October housing starts were the strongest since July 2007 while the supply of homes on the market "remains constrained."
Consumer confidence is healthy and interest rates and unemployment remain low, the executive said.
In the first six weeks of the fiscal 2020 first quarter, demand has been stronger than it was in fiscal 2019's fourth quarter, he said.
For the first quarter, Toll Brothers expects to deliver 1,650 to 1,850 homes. Toll Brothers estimates the average price of those first-quarter deliveries at $800,000 to $820,000.