Before the market opened today, luxury-home builder Toll Brothers (NYSE:TOL) reported fourth-quarter and full-year 2013 earnings. For the fourth quarter the company delivered quarterly earnings of $94.9 million, or $0.54 per share. That was down from last year's fourth quarter, in which Toll Brothers benefited from a larger reversal in a deferred tax asset valuation allowance. Overall, earnings exceeded analyst expectations, while both home deliveries and revenue improved, marking a solid quarter for Toll Brothers.
Toll Brothers reported revenue $1.04 billion on the quarter, which is up 65% from last year's fourth quarter. A 36% increase in units delivered and a rising average home selling price contributed to the rise in revenue. Overall, Toll Brothers sold its homes for an average of $703,000 last quarter compared to an average of $582,000 in the year-ago fourth quarter. Increasing consumer confidence when combined with historically low mortgage rates boosted Toll Brothers' sales.
The fourth quarter marked a solid end to a good year for Toll Brothers. For the full year, the homebuilder reported $2.67 billion in revenue and delivered net income of $170.6 million, or $0.97 per share. Homebuilding units deliveries rose 42% in dollars and 27% in units when compared to its 2012 fiscal year.
In commenting on the year, CEO Douglas Yearly stated that, "with revenues and contracts up over 40%, backlog up 50% and operating income up over 200%, FY 2013 was an excellent year for Toll Brothers."