NEW YORK (TheStreet) -- Toll Brothers (TOL) - Get Report stock closed up 8.71% to $29.46 on heavy trading volume on Tuesday following the company's financial results that topped estimates for the fiscal 2016 second quarter. The report was released before today's market open.
The Horsham, PA-based homebuilder reported earnings of 51 cents per share on revenue of $1.12 billion for the quarter ended April 30. Analysts surveyed by Thomson Reuters had estimated earnings of 46 cents per share on revenue of $1.04 billion.
Revenue jumped 31% year over year driven by a 9% increase in units with 1,304 homes building deliveries during the quarter. The average price of homes delivered was $855,500, up from $713,500 for the same quarter last year.
Shares of Toll Brothers also got a boost from strong domestic housing data. New home sales increased 16.6% to 619,000 units in April, according to data from the U.S. Commerce Department, Reuters reports.
By the end of the trading day, 10.56 million shares of Toll Brothers had exchanged hands, more than four times its average daily volume of 2.49 million shares.
Separately, Toll Brothers has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures, which offsets deteriorating net income, disappointing return on equity and generally disappointing stock performance.
You can view the full analysis from the report here: TOL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.