The luxury homebuilder's quarterly sales also rocketed higher, buoyed by pent-up demand, low rates, and a strong jobs market. Fred Katayama reports.
A hot spring for Toll Brothers. The luxury homebuilder's quarterly profit shot up 40 percent. And sales rocketed higher. The company attributed the results to pent-up demand, low rates, stronger homebuyer credit profiles and a solid job market, among other things. It said the last three months was its best spring selling season in over a decade. Toll issued a bullish outlook, raising its forecast for sales for the fiscal year. Orders - a key metric for future revenue - rose 26 percent. Back in April, homebuilders D.R. Horton and PulteGroup also reported profits that beat estimates. Toll expanded its profit even though the average selling price of its homes fell. That partly stemmed from the company's roll out of a new line of lower priced homes. Raymond James analyst Buck Horne said, "Toll also appears to be having new success with a more 'affordable' line of luxury homes popular among affluent millennials." Toll Brothers shares added to their hefty 23 percent gain this year at the start of trading. Separately, the Commerce Department reports new home sales tumbled in April. But the housing recvoery likely remains intact.