Luxury home builder Toll Brothers Inc. (TOL) comes on our radar after reporting a sharp growth in fourth-quarter profit, benefiting from a hefty tax benefit.
Company Profile
Toll Brothers designs, builds, markets, and arranges finance for single-family detached and attached homes in luxury residential communities. It is also involved in building or converting existing rental apartment buildings into high-, mid-, and low-rise luxury homes.
In addition, the company develops, owns, and operates golf courses and country clubs associated with various planned communities, as well as individual communities. It serves move-up, empty-nester, active-adult, age-qualified, and second-home buyers in 20 states in the United States.
Quarterly Results
--- Fourth-quarter net income increased to $411.42 million or $2.35 per share from $15.04 million or $0.09 per share last year.
On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $0.23 for the quarter. Analysts' estimates typically exclude special items.
Revenues were $632.83 million compared to $427.78 million last year. Analysts expected revenue of $566.74 million for the quarter.
--- Third-quarter net income was $61.6 million or $0.36 per share, higher than the prior year's $42.1 million or $0.25 per share.
On average, 20 analysts polled by Thomson Reuters expected the company to earn $0.18 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the three-month period improved to $554.32 million from $394.31 million in the year-ago quarter. Eighteen analysts had a consensus revenue estimate of $508.98 million for the quarter.
--- Second-quarter profit was $16.87 million or $0.10 per share, compared to a loss of $20.77 million or $0.12 per share last year.
On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share. Analysts' estimates typically exclude special items.
Excluding write-downs and joint venture impairments and recoveries, pre-tax income was $16.1 million, compared to $1.0 million in the same quarter a year earlier.
Quarterly revenues rose to $373.68 million from $319.68 million in the prior-year quarter. Analysts estimated revenues of $381.69 million.
--- First-quarter net loss was $2.79 million or $0.02 per share versus profit of $3.42 million, or $0.02 per share.
On average, 19 analysts polled by Thomson Reuters expected earnings per share of $0.02 for the quarter. Analysts' estimates typically exclude one-time items.
On a pre-tax basis, quarterly loss narrowed to $6.4 million from $17.0 million, while excluding inventory and joint venture write-downs, pre-tax income plunged to $1.7 million from $8.1 million a year ago.
Revenues totaled $321.95 million, lower than the previous year's $334.12 million, while 16 analysts estimated revenues of $360.84 million for the quarter.
Annual Financial Data
For fiscal 2012, the company reported net income of $487.1 million or $2.86 per share, compared to $39.8 million or $0.24 per share last year.
Full year Pre-tax income was $112.9 million, compared to a pre-tax loss of $29.4 million in FY 2011.
Revenues increased to $1.88 billion from $1.48 billion generated a year ago.
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