NEW YORK (TheStreet) -- Toll Brothers (TOL) climbed over Wednesday's session after the homebuilder posted 67% sales growth in its most recent quarter. The homebuilder recorded revenue of $860.37 million in its second quarter ended April, while earnings more than doubled to 35 cents a share.
Growth was thanks to both quantity and quality of houses built. The company managed to build more luxury homes at higher prices in its spring selling season, a quarter seen as highly profitable for companies in the home construction sector. Toll Brothers delivered 1,218 units, a 38% jump in volume from a year earlier. The price per home increased with the average selling price increasing 22%.
By market close, shares had added 2.1% to $36.37.
TheStreet Ratings team rates TOLL BROTHERS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TOLL BROTHERS INC (TOL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, growth in earnings per share, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."