Toll Brothers reports Q1 EPS $1.75, consensus $2.05

Reports Q1 revenue $1.86B, consensus $1.91B. Backlog value was $6.94B at first quarter end. Douglas Yearley, Jr., chairman and chief executive officer, stated: “In our first quarter, we delivered 1,991 homes at an average price of approximately $925,000, generating home sales revenues of $1.84 billion. Our adjusted gross margin was 26.9% in the quarter, or 65 basis points better than guidance, and our SG&A expense, as a percentage of homebuilding revenues, was 13.1%, or 40 basis points above guidance. While our net income and earnings per share came in below expectations, this was due primarily to impairments and a delay in the sale of a stabilized apartment property in one of our joint ventures. Our core homebuilding operations met expectations in the quarter.”