“Toll Brothers Inc. (TOL), the largest U.S. luxury-home builder, said fiscal fourth-quarter earnings jumped as the company profited from an increase in revenue and a net tax benefit of $350.7 million.
Net income was $411.4 million, or $2.35 a share, in the three months ended Oct. 31, compared with $15 million, or 9 cents, a year earlier, Horsham, Pennsylvania-based Toll said today in a statement. The average estimate of 19 analysts in a Bloomberg survey was for earnings of 24 cents a share.
The U.S. housing market has begun to recover after a six- year slump as low interest rates and rising consumer confidence spur demand for new homes. Construction spending climbed more than economists estimated in October as work on homes jumped to the highest level since November 2008, the Commerce Department reported yesterday.
“Pent-up demand, rising home prices, low interest rates, and improving consumer confidencemotivated buyers to return to the housing market,” Toll Brothers Chief Executive Officer Douglas Yearley Jr. said in the statement.
Revenue totaled $632.8 million, an increase of 48 percent over a year ago, the company said. Net contracts signed climbed 75 percent to $684.1 million. The company’s backlog of properties under contract increased 70 percent to $1.67 billion.”
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