Toll Brothers Inc. (TOL) gained 2.3% after the homebuilding company released impressive preliminary fourth quarter and fiscal 2014 figures for orders, backlog and homebuilding revenues on Nov 10. Shares were up as orders rebounded during the quarter.
Preliminary Fourth Quarter 2014 Numbers
The company reported preliminary revenues of $1.35 billion in the fourth quarter of fiscal 2014, up by 29% year over year on the back of aggressive pricing and an increase in the number of homes closed. The Zacks Consensus Estimate for the quarter stood at $1.32 billion.
The number of consolidated homebuilding deliveries increased to 1,807 units in the fourth quarter of fiscal 2014, up 22% year over year. The average price of homes delivered was $747,000 in the quarter, up 6.3% year over year. The company witnessed increase in home delivered in all the operating regions.
The number of net orders signed was 1,282 units in the fourth quarter of fiscal 2014, up 10% year over year. Value of net orders signed during the quarter was $970.2 million, up 16% year over year. The average price of order was $757,000 in the quarter, up 5% year over year.
Orders rebounded after slowing down in the past few quarters due to leveling of housing demand. The company witnessed improvement in orders and value in all the regions, apart from the North region.
The company’s backlog totaled 3,679 homes as of Oct 31, 2014, flat year over year. Potential housing revenues from backlog grew 3% year over year to $2.72 billion, primarily attributable to an increase in prices of backlogs.
Fiscal 2014
The company reported preliminary revenues of $3.91 billion in fiscal 2014, up 46% year over year on the back of a 29% increase in number of homes closed. The Zacks Consensus Estimate was $3.87 billion. The homebuilding company ended fiscal 2014 with 263 selling communities.
Toll Brothers Inc. carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the building and related sector include Hovnanian Enterprises Inc. (HOV), Lennar Corp. (LEN) and Beazer Homes USA Inc. (BZH). While Hovnanian Enterprises sports a Zacks Rank #1 (Strong Buy), Lennar Corp and Beazer Homes carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment