Consumer Confidence, Low Mortgage Rates Boost Toll Brothers' Sales
Before the market opened today, luxury-home builder Toll Brothers reported fourth-quarter and full-year 2013 earnings. For the fourth quarter the company delivered quarterly earnings of $94.9 million, or $0.54 per share. That was down from last year's fourth quarter, in which Toll Brothers benefited from a larger reversal in a deferred tax asset valuation allowance. Overall, earnings exceeded analyst expectations, while both home deliveries and revenue improved, marking a solid quarter for Toll Brothers.
Toll Brothers reported revenue $1.04 billion on the quarter, which is up 65% from last year's fourth quarter. A 36% increase in units delivered and a rising average home selling price contributed to the rise in revenue. Overall, Toll Brothers sold its homes for an average of $703,000 last quarter compared to an average of $582,000 in the year-ago fourth quarter. Increasing consumer confidence when combined with historically low mortgage rates boosted Toll Brothers' sales.
The fourth quarter marked a solid end to a good year for Toll Brothers. For the full year, the homebuilder reported $2.67 billion in revenue and delivered net income of $170.6 million, or $0.97 per share. Homebuilding units deliveries rose 42% in dollars and 27% in units when compared to its 2012 fiscal year.
In commenting on the year, CEO Douglas Yearly stated that, "with revenues and contracts up over 40%, backlog up 50% and operating income up over 200%, FY 2013 was an excellent year for Toll Brothers."
The article Consumer Confidence, Low Mortgage Rates Boost Toll Brothers' Sales originally appeared on Fool.com.Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.