Toll Brothers (NYSE:TOL) reported it swung to a profit in its fiscal Q3 of $0.16 per share, topping consensus estimates of $0.14 per share.
Revenues in the quarter slipped to $454.2 million, but still came in ahead of consensus estimates of $395.3 million.
FY 2010’s third-quarter-end backlog of $939.4 million and 1,636 units rose 1% in both dollars and units, compared to FY 2009’s third-quarter-end backlog.
Joel H. Rassman, chief financial officer, stated: “”We expect the approximate range of deliveries in 2010’s fourth quarter will be between 560 and 760 units, bringing total deliveries for FY 2010 to between approximately 2,500 and 2,700 homes. We estimate the average delivered price per home for the fourth quarter will be between $560,000 and $570,000. We believe that our gross margins before interest and write downs as a percentage of revenues for the fourth quarter will be higher than in 2009’s fourth quarter.
SmarTrend alerted subscribers to take profits in Toll Brothers on June 04, 2010 at $19.72, since then the stock fell 17.9%. We are now watching for any positive developments that could result in a new uptrend signal.