Toll Brothers' fiscal third-quarter earnings jumped 54 percent with a boost from a bigger tax benefit, but the home builder saw a double-digit drop in revenue as home deliveries fell, according to the Wall Street Journal.
The company, which caters largely to affluent move-up buyers in the Northeast and Middle Atlantic, is considered one of the sector's best performers and analysts watch its performance closely. Toll saw cancellations increase and orders climb modestly, raising red flags.
For the quarter ended July 31, Toll Brothers reported a profit of $42.1 million, or 25 cents a share, up from $27.3 million, or 16 cents a share, a year earlier. The results included a tax benefit of $38.2 million, up from $26.5 million a year earlier.
Revenue slumped 13 percent to $394.3 million. Analysts polled by Thomson Reuters expected earnings of 3 cents a share on $404 million in revenue.
The gross margin slipped to 13.8 percent from 14.2 percent a year earlier.
For more information: http://online.wsj.com/article/BT-CO-20110824-711095.html
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