Toll Brothers Inc. (TOL - Get Report) posted fiscal first-quarter net income of $112.1 million, or 76 cents a share on revenue of $1.32 billion, vs. earnings of 83 cents a share on sales of $1.2 billion in the same quarter a year ago.

Analysts had expected the luxury home builder to make 61 cents a share on $1.3 billion in revenue, according to FactSet data.

The company said net signed contract value for the period was $1.16 billion, down 31% while contract units fell 24% to 1,379. The company forecast fiscal second-quarter deliveries of 1,650 to 1,850 units with average selling prices between $860,000 and $890,000.

Shares rose 4.5% to $38.98 in after-hours trading.

CEO Douglas Yearley blamed the decline in first-quarter contracts on "a difficult year-over-year comparison, a lack of current inventory in certain locations and the industry-wide slowdown that began in the second half of 2018," according to a company statement.

However, he said the company was encouraged by improving demand in February, "especially by last week's deposits, which exceeded last year's same week."

The report follows a weak report for housing starts from the Commerce Department Tuesday. Housing starts fell 11.2% in December to their lowest level in more than two years, according to the department's latest data.