U.S. luxury homebuilder Toll Brothers on Tuesday reported a rise in quarterly profit and revenue, boosted by higher demand for its homes.
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Orders, a key metric of future revenue for homebuilders, rose 14.5 percent to 1,979 homes in the fourth quarter. A robust labor market has supported demand for housing in the United States.
“Meanwhile our customers in the upscale market are benefiting from low unemployment, income growth, a strong stock market and attractive mortgage rates,” Executive Chairman Robert Toll said.
Toll Brothers said the average price of homes sold marginally increased to $836,600 from a year earlier, while the number of homes sold rose 9 percent to 2,424.
Homebuilders have reported largely positive quarterly results and remained upbeat on the housing market even as the recent hurricanes weighed on some operations.
The company’s net income rose to $191.9 million, or $1.17 per share, in the fourth quarter ended Oct. 31, from $114.4 million, or 67 cents per share, a year earlier.
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The year-ago quarter was hit by a $121.2 million warranty charge.
Revenue rose 9.3 percent to $2.03 billion.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)
