Toll Brothers misses by $0.04, beats on revs; reaffirms its previous guidance for full FY 2018 Adjusted Gross Margin
- Reports Q2 (Apr) earnings of $0.72 per share, $0.04 worse than the Capital IQ Consensus of $0.76; revenues rose 17.3% year/year to $1.6 bln vs the $1.58 bln Capital IQ Consensus.
- Based on FY 2018's second-quarter-end backlog and the pace of activity at its communities, the Company now estimates it will deliver between 8,000 and 8,500 homes in FY 2018, compared to previous guidance of 7,800 and 8,600 units. It now believes the average delivered price for FY 2018 will be between $830,000 and $860,000 per home.
- This translates to projected revenues of between $6.64 billion and $7.31 billion in FY 2018, compared to $5.82 billion in FY 2017.
- The Company now expects FY 2018 Other income and Income from unconsolidated entities of between $130 million and $160 million.
- The Company reaffirms its previous guidance for full FY 2018 Adjusted Gross Margin of between 23.75% and 24.25%, SG&A, as a percentage of revenues, of approximately 10.0% and a FY 2018 tax rate of between 23% and 25%.
- The Company expects FY 2018 third-quarter deliveries of between 2,100 and 2,200 units with an average price of between $830,000 and $850,000.
- The Company expects its third-quarter FY 2018 Adjusted Gross Margin to be approximately 23.4% of revenues.