(Reuters) – U.S. luxury homebuilder Toll Brothers Inc reported a better-than-expected quarterly profit, helped by strong demand for its homes in an improving job market.
Toll cut the top end of its adjusted gross margin forecast for fiscal year ending October 2017 to 25.0 percent, from 25.3 percent while keeping the lower end unchanged at 24.8 percent.
The company also narrowed its full-year revenue forecast range to $5.6 billion-$6.0 billion from $5.4 billion-$6.1 billion.
Toll, which builds homes that can cost upwards of $2 million, said it expected to sell between 7,000 and 7,300 homes in fiscal 2017, compared with its previous forecast of 6,950 and 7,450 homes.
The company also raised the lower end of its full-year forecast for average price of homes sold to $800,000 from $775,000, while keeping the upper end unchanged at $825,000.
The homebuilder said its net income rose to $148.6 million, or 87 cents per share, in the third quarter ended July 31 from $105.5 million, or 61 cents per share, a year earlier.
Toll’s quarterly profit included a tax benefit of 17 cents related to the reversal of a state deferred tax asset valuation allowance.
Revenue rose 18.3 percent to $1.50 billion.
Analysts on average had expected quarterly profit of 69 cents per share, and revenue of $1.51 billion, according to Thomson Reuters I/B/E/S. (Reporting by Pranav Kiran and Ankit Ajmera in Bengaluru; Editing by Arun Koyyur)
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