NEW YORK, NY / ACCESSWIRE / January 12, 2017 / Shares of KB Home saw a big gain on Thursday and even hit a new 52-week high after announcing encouraging fourth quarter results. Shares of Toll Brothers also moved higher after it was revealed that Edge-on Hudson has chosen the company to build a waterfront development.
RDI Initiates Coverage on:
Toll Brothers, Inc.
KB Home shares closed up 12.31% on about 13.2 million shares traded on Thursday. The stock also soared to a new high of $38.80 during intra-day trading. Trading volume at over 13 million shares was colossal compared to the average of just around 2.1 million shares traded. The California-based home builder reported strong gains for its last quarter. For the full year 2017, revenue at $4.37 billion was a jump of 22%. Yielding profits at $1.85 a share was up from $1.12 in the 2016 fiscal year. Revenue of the 4Q17 increased by 18% to $1.4bn. The company's expenses also saw improvement by dropping 50 basis points to 8.7% of housing revenues in the 4th quarter of 2017. Higher revenue and effective expense controls resulted in gross profit margin on housing increasing by 160 basis points to 18.6% in the 4th quarter. According to company CEO Jeffrey Mezger, the economy's strength should drive housing demand this year. He stated, "[W]e expect conditions will remain favorable in most of our served markets."
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Toll Brothers, Inc. shares closed up 2.61% on about 2.1 million shares traded yesterday. The company was selected by Edge-on Hudson to be a builder for a waterfront development in Sleepy Hollow. Toll Brothers has signed an agreement to purchase and build out lots in Phase 1 of the project. It is anticipated that the company will build as many as 306 units of housing, including 61 affordable workforce and senior housing units. Edge-on is a joint venture of SunCal and Diversified Realty Advisors. David Soyka, Senior Vice President, SunCal, commented, "Toll Brothers is the ideal builder for a project that demands world-class design and construction expertise. Edge-on-Hudson will be a premier transit-oriented, waterfront community poised at the gateway to the Hudson Valley." Jonathan Stein, the founding partner of Diversified Realty Advisors, also said, "After an 18-year journey, I'm thrilled to see this project reach fruition. It will be gratifying to see the first residents move in to this extraordinary location along the Hudson
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