Toll Brothers Inc. (NYSE: TOL) released its fourth quarter earnings on Tuesday, with management expressing optimism about the future despite reporting a much lower net profit and slightly lower revenue for the quarter.
The Horsham, Pa.-based luxury home builder posted a 42 percent decline in net profit from $310.3 million a year ago to $173.8 million. Total sales fell 10 percent from $2.02 billion to $1.81 billion. The company noted that 585 previously announced cancellations of sales contract by customers were among the reasons for the lower sales figure.
Fifteen months into the current slowdown, we may be seeing a floor in some markets where deposits and traffic, although erratic from week to week, seem to be dancing on the bottom or slightly above,â€ Chairman and Chief Executive Robert Toll said in a statement.
Toll added that he believes the company is well positioned for a market rebound.
Right now is a great time to buy a new luxury home. Builders are motivated to sell their specs and the fundamentals that typically lead our industry out of a slowdown are already in place,â€ he said. â€œInterest rates are near historic lows, unemployment is near an all-time low and the stock market is setting records.â€
Toll Brothers shares rose 81 cents, or 2.51 percent, to $32.94 in late afternoon trading on the New York Stock Exchange.