Toll Brothers Inc. says its fiscal third-quarter net income rose 54 percent, partly helped by a higher tax benefit.

But the nation's biggest luxury homebuilder narrowed its full-year home delivery outlook on Wednesday as market conditions remain unstable.

Toll Brothers earned $42.1 million, or 25 cents a share, for the three months ended July 31. That compares with net income of $27.3 million, or 16 cents a share, in the prior-year period.

This beat the 4 cents a share analysts expected.

The quarter included a $38.2 million tax benefit compared with a $26.5 million benefit a year ago.

Revenue dropped 13 percent to $394.3 million from $454.2 million, missing Wall Street's $409.2 million estimate.

Toll Brothers, based in Horsham, Pa., has operations in 19 states.