(Reuters) - Toll Brothers Inc (N:TOL), the largest U.S. luxury homebuilder, reported a better-than-expected quarterly profit and raised the low end of its average selling price forecast for the full year as demand strengthens.
The company raised the low end of its average selling price range to $730,000 from $725,000. The upper end was unchanged at $760,000.
Average selling price rose 1 percent to $713,500 in the second quarter ended April 30.
"The economy and housing continue on parallel paths of recovery. It appears the housing market is on firm footing and heading in the right direction," Executive Chairman Robert Toll said in a statement on Wednesday.
The company narrowed its forecast for full-year home completions to 5,300-5,900 homes from 5,200-6,000.
Toll said the number of homes finished fell 2 percent to 1,195 units in the second quarter.
Net income rose to $67.9 million, or 37 cents per share, from $65.2 million, or 35 cents per share a year earlier, helped by lower tax provisions.
The company said it had reversed tax reserves of $13.7 million in the quarter due to a favorable settlement of a state tax liability.
Total revenue fell 1 percent to $852.6 million.
Analysts on average had expected earnings of 35 cents per share on revenue $861.1 million, according to Thomson Reuters I/B/E/S.
Toll's shares were up 1.2 percent in premarket trading.
Up to Tuesday's close of $36.99, the stock had risen about 4 percent in the past 12 months, compared with the 11 percent rise in the Dow Jones U.S. home construction index (DJUSHB).