updated 12/8/2005 10:31:57 AM ET 2005-12-08T15:31:57

Toll Brothers Inc., a leading builder of luxury homes, reported Thursday that its fiscal fourth-quarter profit rose 72 percent and topped expectations, but said fiscal 2006 earnings could miss Wall Street estimates on a slowing housing market, and was uncertain of its outlook for 2007.

The builder said earned $310.3 million, or $1.84 per share, in the three months ended Oct. 31, up from $180.6 million, or $1.11 per share, a year ago. Revenue climbed 40 percent to $2.02 billion from $1.45 billion last year.

Analysts surveyed by Thomson Financial expected earnings of $1.65 per share on sales of about $2.02 billion. The company said its results in the latest quarter were the highest for any quarter in its history.

For the full year, earnings nearly doubled to $806.1 million, or $4.78 per share, from $409.1 million, or $2.52 per share, last year. Revenue rose to $5.79 billion from $3.86 billion.

Analysts forecast earnings of $4.59 per share on revenue of $5.81 billion for the year.

Toll Brothers forecast 2006 earnings would be between $4.79 and $5.27 per share, including 11 cents per share for stock options expense, on revenue of $6.65 billion to $7.25 billion. Analysts expect a profit of $5.25 per share on $6.74 billion in revenue.

The company said its outlook assumes deliveries of 9,500 to 10,200 homes, at an average price of $670,000 to $680,000 per home. It also expects $280 million to $300 million in revenue from four high-rise towers.

“We look to the future with cautious optimism,” said Robert I. Toll, chairman and chief executive, in a statement. “We believe demand for our luxury homes relies, in large measure, on consumer confidence, which has suffered recently among our clientele. We also believe that the fundamental imbalance between supply and demand will reassert itself.”

Toll said it expects “record results” in fiscal 2007 on expected demand and projected community growth, but noted “these are uncertain times and results could prove better or worse than the previous guidance we gave of 20 percent growth for fiscal 2007.”

The company said it would provide more detailed guidance for fiscal 2007 later in the year. Analysts forecast a profit of $5.55 per share on revenue of about $7.4 billion.

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