Toll Brothers Inc. (NYSE:TOL) saw its third quarter earnings beat forecasts, but its shares were lower in pre-market trading reflecting a fall in average delivered house prices due to a change in the product mix.
The NYSE-listed firm reported net income of US$148.6mln, or 87 US cents a share in the third quarter to end July, up from US$105.5mln, or 61 US cents a share a year earlier, easily beating expectations of 69 US cents a share.
The firm saw its revenue rise to US$1.50bn, up from US$1.27bn a year earlier, albeit just edging the consensus forecast of US$1.51bn.
The group saw its deliveries increase by 26% year-on-year to 1,899 units, but the average price of homes fell to $791,400, compared to $842,700 a year earlier, mostly due to an as expected change in the mix.
Toll Brothers said it now expects to deliver between 7,000 and 7,300 homes in fiscal 2017, up from earlier guidance of 6,950 to 7,450 units, at an average price of $800,000 to $825,000 a home.
In pre-market trading in New York, Toll Brothers shares were down 2% at US$37.48, albeit having gained over 23% in the year to date.