Toll Brothers beats by $0.23, beats on revs; narrows FY18 guidance
- Reports Q3 (Jul) earnings of $1.26 per share, $0.23 better than the S&P Capital IQ Consensus of $1.03; revenues rose 27.3% year/year to $1.91 bln vs the $1.81 bln S&P Capital IQ Consensus.
- Net signed contracts value was $2.03 billion -- up 12%; contract units were 2,316 -- up 7%
- Per-community net signed contracts were 8.10 units per community -- up 18%
- Backlog value at third-quarter end rose to $6.48 billion -- up 22%; units totaled 7,100 -- up 13%
- Adjusted Gross Margin, which excludes interest and inventory write-downs, was 24.3%
- Guidance:
- Full FY 2018 deliveries of between 8,100 and 8,400 units (Prior between 8,000 and 8,500 units) with an average price of between $835,000 and $860,000 (Prior $830,000 and $860,000); sees FY18 revs of $6.76-7.22 bln vs. $7.01 bln S&P Capital IQ Consensus.
- Sees fourth-quarter deliveries of between 2,550 and 2,850 units with an average price of between $840,000 and $870,000
- FY Adjusted Gross Margin of approximately 24.0% of revenues (Prior between 23.75% and 24.25%), consistent with the mid-point of its previous guidance range; fourth-quarter Adjusted Gross Margin of approximately 24.8%