Dive summary:

• Toll Brothers took advantage of a deferred tax benefit that drove profits to dizzying heights in the quarter that closed its fiscal year Oct. 31, but the Pennsylvania-based home builder hit a number more than 300% of the 2011 period.
• In a report, Toll Brothers said it netted $2.35 a share with the tax benefit, compared with 9 cents in the year-before period, but the profit still was about 30 cents a share without the windfall.
• Signed contracts went from 644 in the FY 2011 quarter to 1,098 in 2012, the company said, though CEO Douglas Yearley Jr. told analysts Toll Brothers was "disappointed" with traffic and looking for more as a housing recovery matures.

From the article:

"I think part of it is that the market is still in the early stages of recovery and we are very encouraged that, as traffic picks up, there’s a great opportunity to increase absorption to have some real pricing power." ...