Toll Brothers Inc (NYSE:TOL), the nation’s leading builder of luxury homes, stock rose 5.68% (As on August 21, 11:24:18 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the third quarter of FY 24. Net signed contract value was $2.41 billion, up 11% compared to FY 2023’s third quarter; contracted homes were 2,490, also up 11%. Backlog value was $7.07 billion at third quarter end, down 10% compared to FY 2023’s third quarter; homes in backlog were 6,769, down 7%. Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 28.8%, compared to FY 2023’s third quarter adjusted home sales gross margin of 29.3%. In the third quarter, the company delivered 2,814 homes at an average price of $968,000. Stockholders’ equity at FY 2024 third quarter end was $7.41 billion, compared to $6.80 billion at FYE 2023. FY 2024’s third quarter-end book value per share was $73.46 per share, compared to $65.49 at FYE 2023. The Company ended FY 2024’s third quarter with approximately 72,700 lots owned and optioned, compared to 71,800 one quarter earlier, and 70,200 one year earlier. Approximately 50% or 36,300, of these lots were owned, of which approximately 19,300 lots, including those in backlog, were substantially improved.

TOL in the third quarter of FY 24 has reported the adjusted earnings per share of $3.60, beating the analysts’ estimates for the adjusted earnings per share of $3.28, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 2 percent to $2.73 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue by 1.17%.

Additionally, Toll Brothers repurchased $246 million of common stock in the quarter and increased its expected share repurchases for fiscal 2024 from $500 million to $600 million. The Company ended its FY 2024 third quarter with $893.4 million in cash and cash equivalents, compared to $1.30 billion at FYE 2023 and $1.03 billion at FY 2024’s second quarter end. At FY 2024 third quarter end, the Company also had $1.77 billion available under its $1.96 billion revolving credit facility, which is scheduled to mature in February 2028.

The company now expect adjusted gross margin to be approximately 28.3% for the full year. The company also expect to earn between $14.50 and $14.75 per diluted share with a return on beginning equity of approximately 22.5%.