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Toll Brothers, sometimes called the McMansion builder, reported its best revenue since the 2008 financial crisis. The luxury ...
home builder says sustained demand is the best its seen in more than five
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Toll Brothers, sometimes called the McMansion builder, reported its best revenue since the 2008 financial crisis. The luxury home builder says sustained demand is the best its seen in more than five years. The company's selling more homes at higher prices, according to Toll Brothers CFO, Martin Connor: SOUNDBITE: MARTIN CONNOR, CHIEF FINANCIAL OFFICER, TOLL BROTHERS (ENGLISH) SAYING: "We are blessed with increased demand. The pent up demand from customers who've been on the sidelines for the last four to five, six years has started release. We have a very attractive slate of product offerings in excellent locations.' Toll blew past Wall Street estimates posting 36-cents a share, double what analysts expected. And revenue topped $554 million, helping the company boost its full-year forecast. SOUNDBITE: REPORTER STANDUP, CARMEN ROBERTS, REUTERS (ENGLISH) SAYING: "Toll Brothers targets mostly affluent customers and is one of the top builders in the industry. The company's strong performance in the latest quarter is more evidence the US housing market is recovering from the deep rut it fell into six years ago." As the market recovers there may be a shortage of lots ready for building. Toll will benefit from any shortage because the company owns so much land. That according to Brett Kornfeld, Director of Applied Strategy for Discern: SOUNDBITE: BRETT KORNFELD, DIRECTOR APPLIED STRATEGY, DISCERN, (ENGLISH) SAYING: "Companies like Toll, that not just have significant land holdings today, but a history of truly performing on the land that they've built up, may in many ways truly benefit more than people expect going forward." Kornfeld is bullish on the housing market and Toll Brothers. As the housing market recovers, Toll's land may also appreciate in value. That may help the stock gain more ground. Shares touched a 5-year high after earnings on Wednesday. SOUNDBITE: MARTIN CONNOR, CHIEF FINANCIAL OFFICER, TOLL BROTHERS (ENGLISH) SAYING: "So while we've had some fits and starts since the downturn, we believe based on the strength and depth of this selling season that the market is back." Existing home sales back up that view. Sales rose in July as interest rates stayed low and the job market improved slightly. Carmen Roberts, Reuters.