Luxury homebuilder Toll Brothers Inc. (NYSE: TOL) is scheduled to discuss its fiscal third-quarter 2009 results tomorrow in a conference call at 2:00 PM ET hosted by CEO Robert I. Toll. You can catch the live webcast of the call on the company's website.
Recent good news about the housing sector ought to be good news for homebuilders such as Toll Brothers. Yet, for the three months that ended July 31, analysts surveyed by Thomson Reuters expect the Pennsylvania-based company to report that its net loss widened to $1.74 per share from $0.18 per share a year ago. That largely due to the fact that revenue for the quarter is expected to have fallen 42.3% to $460.2 million, because of of falling home prices, tighter mortgage lending standards, and rising unemployment.
Analysts so far expect a much smaller loss of $0.33 per share in the third quarter. For the full year, though, they are looking for a loss of $3.15 per share on sales of $1.7 billion, down from a loss of $1.88 per share and sales of $3.2 billion a year ago. In the past three quarters, Toll Brothers losses have been a couple of pennies per share more than estimated.
Its long-term EPS growth forecast is only 9.0%, but that's better than rivals Hovnanian Enterprises Inc. (NYSE: HOV) and D.R. Horton Inc. (NYSE: DHI). The First Call consensus recommendation shifted from hold to buy to hold TOL in the past three months. Minyanville doesn't think Toll Brothers, a luxury homebuilder, will come back until the economic recovery is well underway.
Toll Brother shares have risen about 24% in the past three months, rising well above the 100-day moving average, and closed Wednesday at $23.15.
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Reader Comments (Page 1 of 1)
8-27-2009 @ 6:35AM
Dennis said...
GOOD! THEY AND ALL THE OTHER McMansion BUILDERS SHOULD BE PUT OUT OF BUSINESS!
>THEY LOBBIED AND PAID OFF OUR CONGRESS YRS AGO TO SET UP DROPPING RATES WAY TO LOW AND REDUCED LOAN REQUIREMENTS THAT EVEN ILLEGALS COULD BUY A BARN
> THEY OVER BUILT DUE TO GETTING EASY $ AND GREED
>AND NOW WE'RE SUPPOSED TO BAIL THEM OUT? OR AT THE LEAST FEEL SORRY FOR THEM?
I DON'T THINK SO
THEY WERE PART OF THE PROBLEM, NOT THE SOLUTION