Toll Brothers Lifts FY17 Delivery View; Sees Significantly Higher EPS

(RTTNews) - Toll Brothers, Inc. (TOL), a builder of luxury homes, Wednesday raised its delivery guidance for fiscal 2017, and said it expects to produce significantly higher earnings per share for the full year.

For fiscal 2017, the company projects revenues between $5.2 billion and $6.2 billion. On average, 14 analysts polled by Thomson Reuters expect revenues of $6.35 billion for the year. Analysts' estimates typically exclude special items.

The company increased the mid-point of its delivery guidance by 100 units and now expects deliveries of between 6,700 and 7,500 units with an average price of between $775,000 and $825,000.

The company reaffirmed its previous guidance for adjusted gross margin.

Douglas Yearley, Jr., Toll Brothers' chief executive officer, stated, "FY 2017 should be another year of substantial growth. Deliveries are projected to increase from 6,100 in FY 2016 to between 6,700 and 7,500 in FY 2017. We should continue to post strong gross margins."

For the second quarter, the company expects deliveries of between 1,350 and 1,650 units at an average delivered sales price of between $810,000 and $835,000. Adjusted Gross Margin is expected to be between 23.8% and 24.2%.

In its first quarter, net income was $70.4 million or $0.42 per share, compared to net income of $73.2 million or $0.40 per share last year. Analysts expected earnings of $0.35 per share for the quarter.

Revenues of $920.7 million, slightly lower than $928.6 million last year. Analysts expected revenues of $903.81 million.

Home building deliveries of 1,190 units increased 12% from 1,063 units. The average price of homes delivered declined to $773,700, due to changes in product mix, compared to $873,500 last year.