By Christiana Sciaudone
Investing.com -- Toll Brothers (NYSE:TOL) rose almost 3% after reporting stellar results and stronger guidance.
Earnings per share of $1.01 for the fiscal second quarter bested the forecast of 79 cents on sales of $1.9 billion, which surpassed the expected $1.77 billion, according to data compiled by Investing.com.
Home sales revenue reached a second quarter record at $1.84 billion, up 21% compared to a year earlier; delivered homes were 2,271, up 18%. The company expects to deliver 2,675 units in the third quarter, and as many as 10,400 units for fiscal 2021.
“Based on the strength of our outlook for the remainder of this year and beyond, we are raising our fiscal year 2021 guidance on nearly all key metrics. We expect continued margin improvement through the second half of fiscal 2021 as well as in 2022, and we project return on beginning equity in excess of 20% in fiscal 2022," said Douglas C. Yearley, Jr., chairman and chief executive officer, in a statement.
Strong demand coupled with constrained supply has helped push prices higher. Contracts and backlogs in units and dollars are at all-time highs.
“We are encouraged by the continued strength of the housing market, which is supported by a long-term supply-demand imbalance, favorable demographics, especially the drive to home ownership among millennials, low mortgage rates, and the greater overall appreciation for one’s home that has emerged out of the pandemic," Yearley said.
Shares are down about 7% since hitting a record earlier this month amid the continued strength of the housing market.