Toll Reports Better-than-Expected Earnings: Ahead of the Ticker

NEW YORK ( TheStreet) -- Luxury homebuilder Toll Brothers ( TOL) reported better-than-expected second-quarter earnings on increased demand for new homes.

The company reported net income of $24.7 million, or 14 cents a share, up from $16.9 million, or 10 cents a share, in the same quarter last year.

Revenue climbed 38% to $516 million.

Analysts expected earnings of 7 cents a share on $515.5 million in revenue.

"Buyers who have been on the sidelines for six years are jumping in," CEO Douglas Yearley said. "Low interest rates, improved customer confidence, a strong stock market, rising home prices and a reawakening economy are stoking the demand that is fueling our luxury market."

According to Toll, the builder experienced the highest level of quarterly orders in seven years. Its average selling price increased 3.6% in the second quarter to $577,000 per home from a year earlier.

Toll signed contracts for 1,753 homes at a value of $1.19 billion, also the highest figures it's experienced sine 2006. The company signed contracts for 1,290 homes at $754.7 million in the same quarter last year.

Target ( TGT) reported disappointing first-quarter sales, prompting the retailer to issue a lower full-year profit outlook than it previously forecast.

First-quarter sales in the U.S. fell 0.6%, worse than the 0.03% decline analysts predicted, according to Thomson Reuters.

Target earned $498 million, or 77 cents a share, in the quarter ended May 4, down from its profit of $697 million, or $1.04 a share, in the same quarter last year.

Target attributed the weak results to the cooler-than-usual spring weather that weighed on shoppers' seasonal spending.

The company now expects adjusted earnings of $4.70 to $4.90 a share for the full year, below the prior forecast of $4.85 to $5.05 that it issued in April.

Analysts had expected earnings of $4.48 a share for the full year.

Drugmaker GlaxoSmithKline ( GSK) has received a development deal worth up to $200 million from the U.S. government to create new antibiotics.

Per the deal, a first of its kind collaboration between the U.S. government and a drug company, GlaxoSmithKline will focus on developing several drugs that will combat antibiotic resistance and bioterrorism.

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