Toll Brothers Q2 earnings: home sales revenue jumped 6.0%

Toll Brothers Inc (NYSE: TOL) is trading up in extended hours on Tuesday after coming in ahead of Street estimates for its fiscal second quarter.

Toll Brothers stock up on impressive guidance

The stock is gaining also because the management issued upbeat guidance for the future. $TOL now expects to deliver up to 2,850 units in Q3 at an average price of between $950,000 and $960,000.

The construction company forecasts about $14 of EPS this year versus analysts at $13.77. Douglas C. Yearley Jr. – the chief executive of Toll Brothers said in a press release today:

The New York listed firm ended its recent quarter with $7.38 billion of backlog – down 12% versus last year. Toll Brothers stock is now up roughly 40% versus its year-to-date low.

Notable figures in Toll Brothers Q2 earnings release

• Earned $481.6 million versus the year-ago $320.2 million
• Per-share earnings also improved from $2.85 to $4.55
• Home sales revenue popped 6.0% to $2.65 billion
• Consensus was $4.14 a share on $2.58 billion in sales
• Home sales gross margin declined 60 bps to 25.8%

Toll Brothers ended its Q2 with $1.03 billion in cash and equivalents, as per the earnings report on Tuesday. According to the chief executive:

In March, $TOL announced a 10% increase to its quarterly dividend to 23 cents per share.