Builder Thanks Homebuyer Tax Credit for First Profit in 3 Years
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With many economists blaming the end of the homebuyer tax credit
for last month's dreadful home sales, at least one company is singing its praises
. Luxury homebuilder Toll Brothers
posted its first profitable quarter in nearly three years -- and the homebuyer tax credit is foremost on its list of thank-yous. The company earned a net income of $27.3 million, or 16 cents per share, on the quarter ending July 31. In the same period last year, they lost $472.3 million. The company's gains came as a surprise to many on Wall Street, who expected the company to post another loss. The news is especially poignant following Tuesday's disastrous existing-home sales report
, in which the authors concluded that the expiration of the tax credit played a large role in declining sales. The same may yet be true for Toll Brothers, as this latest earnings report does not reflect a post-tax credit slowdown
. Will Toll Brothers join the gallery of tax-credit naysayers come next fiscal quarter?
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