TOL This luxury home builder beat estimates again.
Q2 GAAP EPS of $1.85 beats by $0.25.
Revenue of $2.2B (+14.0% Y/Y) beats by $80M.
Net signed contract value was $3.1 billion, up 1% compared to FY 2021’s second quarter; contracted homes were 2,874, down 18%.
Backlog value was $11.7 billion at second quarter end, up 35% compared to FY 2021’s second quarter; homes in backlog were 11,768, up 16%.
They commented in their CC that it remains a strong market even with the dramatic rise in interest rates. They are still limiting sales in many communities and in some cases using best and highest offer which is boosting margins. The stock is up 6% to $47 as I write this. This is still below their expected BV of $53 by the end of their fiscal year. In fact the whole sector is doing well today, no doubt buoyed by this report.
