Luxury homebuilder Toll Brothers (TOL) reported profits of $132.1 million or $0.83 per share in the first quarter. This includes a one-time benefit of $31.2 million due to the recent tax reforms. The company’s revenues spiked 28% to $1.18 billion.
On the home delivery front, the company delivered 1,423 homes, which improved 20% vs. prior year period due to strong housing demand. Looking from a regional point of view, California and Western showed strong growth in units whereas Mid-Atlantic saw slump in demand.
The homebuilder signed contracts worth $1.69 billion for delivering 1,822 homes. Average price for signed contracts in the first quarter stood at $927,800, which is an improvement of 13.6% year-over-year, primarily due to contracts signed in Californian region. Cancellation rate in the quarter was 5.3% vs. 5.8% reported in first quarter 2017.
At the end of first quarter, backlogs remained healthy at $5.58 billion. Total housing units to be delivered increased 21% to 6,250.
For the fiscal year 2018, Toll Brothers narrowed its revenue estimate to $6.40 billion and $7.0 billion from the previous outlook of $6.24 billion and $7.48 billion. Home closings would be between 7,800 and 8,600 units with average home price in the range of $820,000 to $860,000.
Second quarter 2018 home deliveries are targeted in the range of 1,825 and 1,925 with average home prices between $825,000 and $850,000.