Toll Brothers Earnings: Exceeds Forecasts with Boost of Profit Rise

Toll Brothers Inc. (NYSE:TOL) reported net income above Wall Street’s expectations for the fourth quarter. Toll Brothers designs, builds, markets and arranges financing for single-family detached and attached homes in luxury residential communities.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Toll Brothers Inc. Earnings Cheat Sheet

Results: Net income for Toll Brothers Inc. rose to $411.4 million ($2.35 per share) vs. $15 million (9 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 47.9% to $632.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Toll Brothers Inc. beat the mean analyst estimate of 23 cents per share. It beat the average revenue estimate of $382 million.

Quoting Management: Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer, stated: “Pent-up demand, rising home prices, low interest rates, and improving consumer confidence motivated buyers to return to the housing market in FY 2012. As household formations accelerated and unsold home inventories dropped to record lows, the industry took further steps toward a sustained housing recovery.

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 8 cents in the third quarter and by 6 cents in the second quarter.

Revenue has now increased for three quarters in a row. In the third quarter, revenue rose 40.6% to $554.3 million while the figure rose 16.9% in the second quarter from the year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 15 cents a share to 19 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from 65 cents per to share to 68 cents.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Apple and Samsung: Still Leaving Competitors in the Dust

Here’s the Real Fiscal Cliff Facing Americans

Is Disney’s Stock a Buy After Rising Dividends?