Toll Brothers, Inc. (NYSE:TOL) shares are trading higher Wednesday after the company reported better-than-expected second-quarter financial results on Tuesday after the market closed.

• Toll Brothers stock is among today’s top performers. Why are TOL shares rallying?

Q2 Highlights

Toll reported earnings per share of $2.72, beating the consensus estimate of $2.60. In addition, it reported revenue of $2.53 billion, beating the consensus estimate of $2.41 billion.

Home sales revenues totaled $2.51 billion in the quarter, compared to $2.71 billion in the prior-year period. Delivered homes fell to 2,491 from 2,899 year-over-year.

Net signed contract value increased to $2.81 billion from $2.60 billion in the prior-year quarter, while contracted homes rose to 2,834 from 2,650.

Backlog value totaled $6.32 billion at quarter end, compared to $6.84 billion in the prior-year quarter. Homes in backlog decreased to 5,394 from 6,063.

The company ended the quarter with $1.11 billion in cash and cash equivalents and had $2.24 billion available under its senior unsecured revolving credit facility.

During the quarter, Toll repurchased approximately 1.2 million shares at an average price of $143.72 per share for a total of $175.4 million. The company also increased its quarterly cash dividend by 4% from 25 cents to 26 cents per share.

CEO Karl K. Mistry said the company "successfully navigated a challenging market and produced strong results" during the quarter.

The company also said it controls sufficient land for continued 8% to 10% growth in 2027 and beyond.

Toll Shares Edge Higher

TOL Price Action: At the time of publication, Toll shares are trading 2.96% higher at $127.82, according to data from Benzinga Pro.

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