Toll Brothers earns $89M, tops estimates in Q2
Worries about luxury builder’s New York properties “overdone”: analyst
America’s largest luxury home builder reported a strong quarter, beating both analysts’ estimates and last year’s numbers.
That’s up from $67.9 million, or 37 cents a share, over the same period in 2015. Analysts had predicted the Horsham, PA-based firm would make about 46 cents a share in the quarter.
Toll Brothers earned a net income of about $89.1 million, or 51 cents a share, in the three months ending April 30, according to a statement from the company reported on by Bloomberg.
Toll Brothers has expanded into markets such as New York and California, which many say are overpriced, leading to worries about the firm’s future earnings.
Those concerns are “overdone,” analyst Megan McGrath of MKM Holdings told Bloomberg, citing the long-term potential of the company’s portfolio. “In a growth environment, if you assume they can continue to grow, it’s pretty compelling.”
Last month, the company’s urban development arm Toll Brothers City Living, filed a condominium offering for its 133-unit 122 East 23rd Street in Gramercy, which it projects will sell out at $503.5 million, or about $3.8 million per unit.
It’s also developing the Pierhouse condos at Brooklyn Bridge Park, among several other New York City projects. [Bloomberg] – Ariel Stulberg