Toll Brothers Inc. reported higher second-quarter sales as demand for homes continued to outstrip supply.
Fiscal second-quarter net income came in at $127.9 million, beating the $75.7 million from the prior year.
On a per-share basis, net income was $1.01, topping Wall Street expectations and a jump from the 59 cents from a year ago.
The average analyst estimate was for 80 cents per share.
The home builder posted revenue of $1.93 billion in the period, also topping street forecasts.
Home sales revenue climbed 21%.
The homebuilder has also benefited from low mortgage rates.
"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", said Douglas C. Yearley Jr., chairman and chief executive officer. "These market conditions, which we expect to continue into the foreseeable future, play to our strengths of creating luxury communities in desirable locations, offering a broad range of price points, and providing our home buyers the ability to personalize their homes."
Ticker Security Last Change Change % TOLL n.a. n.a. n.a. n.a.
Toll Brothers shares have climbed 43% since the beginning of the year.
Another reading on the strength of the housing market will come Thursday morning when the National Association of Realtors reports pending home sales numbers for April.
U.S. home prices rose 13.2% in the year that ended in March, according to the S&P CoreLogic Case-Shiller National Home Price Index released Tuesday.