Not only did Tolls Brothers record a strong third quarter, but also it did it for the fourth time in a row.
According to an article in Reuters, Toll Brothers reported an 18.2% jump in orders, a key metric of future revenue for homebuilders, to 1,748 units for the third quarter. This marks the highest growth in two years.
The article noted that the homebuilder narrowed its forecast for home deliveries for the year ending Oct. 31, revising it to 5,900-6,200 from its previous range of 5,800-6,300 homes.
After the results were posted, the homebuilder’s stock moved up 2% and is above its 200 day moving average for the first time since December of last year, a briefing.com report stated.
Tolls Brothers’ financial results echo the latest new home sales report that came out Tuesday as well.
According to the latest estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales in July were at a seasonally adjusted annual rate of 654,000, which is up 31.3% from July 2015. This is also 12.4% above the revised June rate of 582,000.
“For years, the market has been practically begging builders to both ramp up their efforts overall and to put more focus on serving the less expensive end of the market,” said Zillow Chief Economist Svenja Gudell. “Today's data confirms both are happening in earnest. Sales were up by double digits in all areas, and the dip in price will be welcome relief to buyers struggling to find affordable inventory in this incredibly tight market.”