More Huge Numbers at Toll Brothers

Third-quarter revenue is a quarterly record for the homebuilder.
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Toll Brothers

(TOL) - Get Report

said its third-quarter homebuilding revenue will be the highest of any quarter in its history.

The company said third-quarter homebuilding revenue rose 55% from a year ago to $1.54 billion. Third-quarter contracts totaled $1.92 billion, up 19% from last year, while the end-of-quarter backlog was $6.43 billion, also the highest of any quarter.

"With buyer appetite so healthy, approximately one-third of our communities now have backlogs stretching out 12 months," Toll said. "Therefore, in a number of communities, we've chosen to hold off taking new-home sale contracts rather than lock in sales prices today for deliveries more than a year away."

Shares of Toll Brothers, whose high-end communities have been at the sweet spot of the real estate boom, are up 62% this year and have tripled since the start of 2004.

"With revenues at nine months running 57% ahead of last year's record total, we remain on track with our previous projection of approximately 70% net income growth in fiscal 2005," the company said. "With more than 60% of fiscal 2006's projected deliveries already in our backlog, we continue to believe that net income in fiscal 2006 should be approximately 20% higher than in fiscal 2005."