Wed, Sep 4, 10:03 AM (132 days ago)
In the third quarter ending July 31, 2024, Toll Brothers, Inc. reported a slight increase in home sales revenue to $2.72 billion, up 2% from the prior year, with net income at $374.6 million, a 10% decline year-over-year. The average delivered price of homes fell by 9% to $968,200, reflecting a shift towards more affordable homes and higher backlog conversions. The company delivered 2,814 homes, an 11% increase from the previous year. For the nine months, total revenues reached $7.51 billion, a 8% increase, driven by a 6% rise in home sales. Cash and cash equivalents decreased to $893.4 million, with significant available liquidity of approximately $1.77 billion under a revolving credit facility. The backlog of homes decreased to $7.07 billion, down 10% year-over-year, indicating a reduction in future revenue visibility. The company continues to face uncertainties related to economic conditions, interest rates, and housing demand, but anticipates potential improvements in sales with expected decreases in mortgage rates. Overall, while quarterly performance showed resilience, profitability metrics indicate pressure from cost increases and changing market dynamics.