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Speaking about a dip in margin in 3Q17, $TOL said there were numerous cost increases including land, labor and materials; but these were offset with improved pricing. However, certain warehouses being pushed forward 60-90 days impacted the numbers during the quarter.
$TOL now expects to deliver 7,000-7,300 homes in FY17, vs previous guidance of 6,950-7,450 units, at an average price between $800,000 and $825,000 per home. This translates to projected revenues of $5.6-6.0Bil in FY17, vs $5.17Bil in FY16. Deliveries in 4Q17 are anticipated between 2,275 and 2,575 units.
Home-builder $TOL posted 18% growth in revenue in 3Q17 to $1.50Bil, despite a drop in average price due to a change in mix. Net income rose to $148.6MM, or $0.87 per share, compared to $105.5MM, or $0.61 per share a year ago. Net signed contracts rose 25% to $1.81Bil, while deliveries were up 26% to 1,899 units during the quarter.
For 3Q17, $TOL expects deliveries of 1,675-1,975 units and average price of $790,000-815,000. The company predicts 3Q17 adjusted gross margin growth of 10 basis points from 2Q17. $TOL sees SG&A to be about 10.4% of 3Q17 revenue, other income and income from unconsolidated entities of $15-30MM and effective tax rate of about 39%.
For FY17, $TOL lifted its home building deliveries outlook to 6,950-7,450 units from 6,700-7,500 units. The company now expects FY17 revenue of $5.4-6.1Bil. $TOL reaffirmed its adjusted gross margin estimate of 24.8-25.3%, and other income and income from unconsolidated entities forecast of $160-200MM. $TOL sees effective tax rate of 37.5%.
$TOL reported a jump in 2Q17 earnings as solid and improving demand and financial strength of affluent buyer base are driving growth. Net income rose to $124.64MM or $0.73 per share from $89.05MM or $0.51 per share last year. Revenue grew to $1.36Bil from $1.12Bil. Home building deliveries jumped 26% to 1,638 units.
$TOL stated the company achieved double digit growth in EPS, revenue, contracts and backlog in FY16. In FY17, the company expects it EPS to grow significantly. The company added that currently, $TOL expects purchase accounting and lower GM from the Coleman Homes acquisition to reduce overall adjusted GM by 30-40 BP in FY17.