Toll Brothers (NYSE: TOL) reported Q1 EPS of $0.83, $0.22 better than the analyst estimate of $0.61. Revenue for the quarter came in at $1.18 billion versus the consensus estimate of $1.18 billion.

FY 2018’s First Quarter Financial Highlights (Compared to FY 2017’s First Quarter):

• Net income was $132.1 million, or $0.83 per share diluted, compared to net income of $70.4 million, or $0.42 per share diluted in FY 2017’s first quarter.
• Pre-tax income was $131.6 million, compared to $109.8 million
• Revenues were $1.18 billion - up 28%; home building deliveries were 1,423 units - up 20%
• Net signed contract value was $1.69 billion - up 36%; contract units were 1,822 - up 20%
• Backlog value at first-quarter end rose to $5.58 billion - up 28%; units totaled 6,250 - up 21%
• Gross margin, as a percentage of revenues, was 20.5%
• Adjusted Gross Margin, which excludes interest and inventory write-downs (“Adjusted Gross Margin”), was 23.7%
• SG&A, as a percentage of revenues, was 13.4%
• Income from operations was 7.1% of revenues
• Other income and Income from unconsolidated entities was $47.9 million
• As a result of the Tax Cuts and Jobs Act enacted in December 2017, FY 2018’s first-quarter net income was favorably impacted by a $31.2 million tax benefit associated with the revaluation of the Company’s net deferred tax liability

In Addition:

• The Company repurchased approximately 4.4 million shares of its common stock at an average price of $47.43 per share for a total purchase price of approximately $210.0 million in its first quarter
• The Company has repurchased an additional approximately 1.4 million shares at an average price of $46.07 per share for a total purchase price of approximately $65.3 million in the second quarter to date

FY 2018 Financial Guidance (Subject to the Forward-Looking Statement Below):

• Full FY 2018 deliveries of between 7,800 and 8,600 units with an average price of between $820,000 and $860,000; second-quarter deliveries of between 1,825 and 1,925 units with an average price of between $825,000 and $850,000
• FY Adjusted Gross Margin of between 23.75% and 24.25% of revenues; second-quarter Adjusted Gross Margin of 22.8%
• FY SG&A, as a percentage of FY revenues, of approximately 10.0%; second-quarter SG&A, as a percentage of second quarter revenues, of approximately 10.6%
• FY Other income and Income from unconsolidated entities of between $130 million and $170 million, with approximately $15 million in the second quarter
• FY tax rate of between 23% and 25%; second quarter tax rate of approximately 27.5%

For earnings history and earnings-related data on Toll Brothers (TOL) click here.