Shares of Toll Brothers Inc. TOL,
fell more than 2% in Tuesday’s extended session after the homebuilder lowered its full-year shipment forecast, blaming labor shortages and supply chain issues and saying that rising mortgage rates and house prices kept some buyers away. Toll Brothers said it earned $273 million, or $2.35 per share, in the fiscal third quarter, compared with $235 million, or $1.87 per share, in the year-ago quarter. Revenue reached $2.49 billion, compared to $2.25 billion a year ago. Analysts polled by FactSet had expected earnings of $2.30 a share on sales of $2.5 billion. Its new home deliveries for the quarter were lower than expected due to “unforeseen delays with city inspectors, ongoing labor shortages and supply chain disruptions, and a demand environment.” lower,” the company said. “Because of these challenges, we have lowered our full year delivery guidance.” Toll Brothers expects to deliver between 10,000 and 10,300 homes this year, at an average price of around $920,000, he said. In May, it had planned the delivery of 11,000 to 11,500 housing units. Based on the high prices, however, it reaffirmed its full-year adjusted gross margin forecast of 27.5% for the year, it said. The company said that as the quarter progressed, it saw “a significant decline in demand as the combined impact of sharply rising mortgage rates, rising house prices, equity market volatility and macroeconomic uncertainty caused many potential buyers to pull out.” There are signs of increased demand in recent weeks, however, Toll Brothers said, “as sentiment improves and buyers return to the market.” Shares of Toll Brothers ended the regular trading day up 0.2%.