Toll Brothers Inc., a builder of luxury homes, said Wednesday quarterly profit soared 120 percent on continued demand for high-end homes.
The company also raised its outlook for the year, and its shares rose in pre-open trading.
For the fiscal first quarter ended Jan. 31, Toll said it earned $110.2 million, or $1.33 per share, compared with $50.1 million, or 62 cents per share, in the year-ago quarter.
Analysts on average had expected the company to earn $1.15 per share, according to Reuters Estimates. Toll said quarterly revenue rose to $999.1 million from $597.9 million.
“We are enjoying strong pricing power and increasing profit margins as demand for luxury homes continues to outpace supply,” Robert Toll, chairman and chief executive officer, said in a statement.
Toll also raised its outlook for 2005, saying it expects to close on 8,050 to 8,400 homes. Based on its first-quarter performance and the outlook for home closings, the company said it now expects 2005 net earnings will be 60 percent above the $409.1 million it reported in 2004, up from a prior forecast of 40 percent growth.
The company is able to gauge fiscal year results with a large measure of assurance because homes that are under contract usually take up to 12 months to build and close. After that, the company can book the home price as revenue.
Analysts expect the firm to earn $7.68 per share in 2005.