Toll Brothers Inc. executives said a recall of floor joists manufactured by Weyerhaeuser Co. will lead to a lower-than-estimated pace of deliveries and revenue in fiscal year 2017.

The company now estimates delivery of 7,000 to 7,300 homes in 2017, compared to a previous estimate of 6,950 to 7,459 delivered homes, CFO Martin Connor said during Toll Brothers' third-quarter earnings call. Revenues are projected to be between $5.6 billion and $6 billion, compared to $5.17 billion in fiscal year 2016, he added.

Connor said that 150 homes slated to be delivered in 2017 will now be delivered in fiscal year 2018, and 20 home closings in the third quarter, representing $18 million in revenue, will be delayed until subsequent periods.

Connor also said that 10 settled homes and 340 homes in the company's backlog were affected by the floor joist recall.

"We are working hard with the manufacturer, our suppliers and our homebuyers to minimize delays and cancellations," he said. "Appropriately, the manufacturer is absorbing the cost associated with resolving these issues."

Looking forward, Toll Brothers CEO Douglas Yearley said he expects "robust" demand for homes among affluent homebuyers. He cited a low supply of homes, pent-up demand from a slow housing recovery and aging millennials who are starting to form families and purchase homes.

Toll Brothers is also considering an expansion of its multifamily rental housing business to southern and western markets, with opportunities to expand its Apartment Living line in Atlanta, Dallas, Phoenix, Southern and Northern California, Yearley said. The company is also considering the Houston, Seattle and Denver markets.

Toll Brothers' shares were down about 3% in afternoon trading.