Reported by: Eric CRWE Newswire Middle East Correspondent
Toll Brothers Inc., (NYSE:TOL) last week reported the profit of $27.3 million or earning per share of $0.16 for the 3rd quarter as compared to net loss of $472.3 million contributing to $2.93 per share for the same period last year. However the company’s revenue dropped to $454.2 million as compared to $461.4 million last year.
Analysts expected the luxury home builder to report the net loss contributing to $0.14 per share with revenue of $396.4 million.
According to the company profit was contributed mostly by tax benefits and fewer write downs. Company’s signed contracts plunged 16 percent to 701 units whereas the value of units dropped 11 percent to $400.1 million.
The company more worries about the sluggish recovery of economy resulting in lower home sales than ever. Further unemployment rate of 9.5 percent, tight credit and lower consumer spending is ending up in lower sales for companies like Toll Brothers.
Toll Brother’s Executive chairman stated, "Recent economic and political news continues to dampen our customers' confidence, we believe the combination of potential buyers postponing their purchasing decisions, a lack of new home production over the past several years, and a significant reduction in our competition in the luxury home niche could result in pent-up demand coupled with limited supply once a recovery takes hold."
Toll Brothers, Inc. engages in designing, building, marketing, and arranging finance for single-family detached and attached homes in luxury residential communities in the United States. It also involves in building or converting existing rental apartment buildings into high-, mid-, and low-rise luxury homes. The company serves move-up, empty-nester, active-adult, age-qualified, and second-home buyers in 21 states. Toll Brothers was founded in 1967 and is headquartered in Horsham, Pennsylvania.
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Disclosure: TOL; YHOO