Investing.com – Toll Brothers stock (NYSE:TOL) gained more than 3% Wednesday as the company said FY22 margins will significantly exceed the strong margins it is projecting for the ongoing fourth quarter.
The maker of luxury homes expects the current quarter’s adjusted home sales gross margin, excluding interest and inventory write-downs, to be 25.6%.
Chairman and Chief Executive Officer Douglas C. Yearley, Jr. said low mortgage rates, favorable millennial-driven demographics, a decade of pent-up demand, low new home supply, and a tight resale market were all driving the market for luxury housing.
“We expect strong and sustainable demand for our homes in the years to come,” he said.
Net signed contracts in the third quarter rose 35% to approximately $3 billion compared to the prior year period.
Quarter-end backlog, in both dollars and units, were all-time records. Net signed contracts, in both dollars and units, were third-quarter records.
Third-quarter home sales revenue was $2.23 billion, up 37%. The builder delivered 2,597 homes, 28% more from the year-ago quarter.
Adjusted profit per share of $1.28 easily exceeded the 78 cents analysts had predicted.