Toll Brothers Updates Guidance - Quick Facts

(RTTNews) - Toll Brothers, Inc. (TOL) announced the company now estimates it will deliver between 7,000 and 7,300 homes in fiscal 2017, compared to previous guidance of 6,950 to 7,450 units. It believes the average delivered price will be between $800,000 and $825,000 per home. This translates to projected revenues of between $5.6 billion and $6.0 billion. The company has updated its previous guidance for fiscal 2017 adjusted Gross Margin to between 24.8% and 25.0% of revenues.

Toll Brothers expects fourth-quarter deliveries of between 2,275 and 2,575 units with an average price of between $840,000 and $860,000. The company expects fourth-quarter adjusted Gross Margin to improve 35 to 50 basis points from third-quarter results. The company noted that its fiscal 2017 and fourth quarter delivery projections reflect approximately 150 impacted homes that it had estimated would be delivered in 2017, but will instead be delivered in fiscal 2018 due to the floor joist recall by a major lumber manufacturer that has affected many builders in the industry. Third-quarter net income was $148.6 million, or $0.87 per share, compared to $105.5 million, or $0.61 per share, a year ago. Adjusted Gross Margin was 25.0%, compared to 25.3%. Revenues were $1.50 billion and home building deliveries were 1,899 units increased 18% in dollars and 26% in units, compared to previous year. The average price of homes delivered was $791,400, compared to $842,700 one year ago. The company said the drop in average price was due to a change in mix.