Builder Thanks Homebuyer Tax Credit for First Profit in 3 Years

Toll Brothers posts first profit in 3 years thanks to homebuyer tax credit
Toll Brothers posts first profit in 3 years thanks to homebuyer tax credit

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?