=Toll Brothers (TOL) reported earnings on Wed 22 Feb 2017 (b/o)

Toll Brothers beats by $0.07, beats on revs; guides FY17 revs in-line; raises FY17 delivery guidance :

• Reports Q1 (Jan) earnings of $0.42 per share, $0.07 better than the Capital IQ Consensus of $0.35; revenues fell 0.9% year/year to $920.7 mln vs the $893.7 mln Capital IQ Consensus.
  • Net signed contracts of $1.24 billion and 1,522 units rose 14% in dollars and 22% in units, compared to FY 2016's first quarter totals of $1.09 billion and 1,250 units. The average price of net signed contracts was $816,700, compared to $869,600 in FY 2016's first quarter.
  • Backlog of $4.35 billion and 5,145 units rose 19% in dollars and 21% in units, compared to FY 2016's first-quarter-end backlog of $3.66 billion and 4,251 units. The average price of homes in backlog was $844,500, compared to $861,600 at FY 2016's first-quarter end.
• Co issues in-line guidance for FY17, sees FY17 revs of $5.19-6.19 bln vs. $5.68 bln Capital IQ Consensus Estimate.
  • The Company is increasing the mid-point of its delivery guidance for full FY 2017 by 100 units and now expects FY 2017 deliveries of between 6,700 and 7,500 units (up from prior guidance of 6,500 and 7,500 units) with an average price of between $775,000 and $825,000
  • The Company reaffirms its previous guidance for full FY 2017 Adjusted Gross Margin, SG&A as a percentage of revenues, Other income and Income from unconsolidated entities and effective tax rate.
  • The Company expects FY 2017 second-quarter deliveries of between 1,350 and 1,650 units with an average price of between $810,000 and $835,000.
  • The Company expects its second-quarter FY 2017 Adjusted Gross Margin to be between 23.8% and 24.2% of revenues.