-=Toll Brothers (TOL) reported earnings Tue 24 May 2016 (b/o)

Toll Brothers beats by $0.05, beats on revs; raises low end of prior revs guidance; guides FY16 revs in-line; announces new 20 mln share repurchase :

• Reports Q2 (Apr) earnings of $0.51 per share, $0.05 better than the Capital IQ Consensus of $0.46; revenues rose 30.8% year/year to $1.12 bln vs the $1.04 bln Capital IQ Consensus.
  • Home building deliveries of 1,304 units increased 31% in dollars and 9% in units, compared to FY 2015's second quarter. The average price of homes delivered was $855,500, compared to $713,500 in FY 2015's second quarter.
  • Net signed contracts of $1.65 billion and 1,993 units rose 3% in dollars and 3% in units, compared to FY 2015's second quarter. The average price of net signed contracts was $825,500, compared to $826,300 in FY 2015's second quarter.
  • Backlog of $4.19 billion and 4,940 units rose 20% in dollars and 13% in units, compared to FY 2015's second-quarter-end backlog. At second-quarter end, the average price of homes in backlog was $848,600, compared to $793,800 at FY 2015's second-quarter end.
• Co issues in-line guidance for FY16, sees FY16 revs of $4.76-5.36 bln vs. $5.02 bln Capital IQ Consensus Estimate and compared to prior guidance of $4.6-5.4 bln
  • In updating its guidance, the Company now expects to deliver between 5,800 and 6,300 homes in FY 2016 at an average price range of $820,000 to $850,000, compared to 5,525 deliveries in FY 2015 at an average price of $755,000.
  • The Company continues to project a full FY 2016 gross margin, excluding interest and write-downs, of between 25.8% and 26.2%. Interest in cost of sales is projected to be approximately 3.2% for FY 2016, compared to 3.4% in FY 2015.
• Effective May 23, 2016, the Board of Directors authorized the repurchase of 20 million shares of Toll Brothers common stock and terminated the prior share repurchase program.