Toll Brothers (TOL) Sees First Improvement In Home Contracts In 16 Quarters

This morning, homebuilder Toll Brothers, Inc. (NYSE: TOL) announced that third-quarter net signed contracts rose 3% to approximately 837 units. The dollar value was approximately $447.7 million, down 5% from last year.

Toll Brothers third-quarter home building deliveries and revenues of approximately 792 units and approximately $461.3 million declined 36% in units and 42% in dollars, and its third-quarter-end backlog of approximately 1,626 units and approximately $930.7 million declined 37% in units and 47% in dollars, compared to FY 2008's third-quarter results.

CEO Robert I. Toll said while the industry continues to face significant challenges, "this marked the first time in 16 quarters - dating back to FY 2005's fourth quarter - that our net contracts exceeded the prior year's same quarter. It also marked the first quarterly sequential unit increase in our backlog in more than three years."

Shares of TOL are up 9% on the news. Other homebuilders are also higher, as represented by the 3% move higher in the ETF SPDR S&P Homebuilders (NYSE: XHB).

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