Stock Story -
Homebuilding company Toll Brothers (NYSE:TOL) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Toll Brothers beat analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $2.84 billion, up 13.2% year on year. It was an exceptional quarter for the company, with a decent beat of analysts’ earnings estimates.
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This quarter, analysts are expecting Toll Brothers’s revenue to be flat year on year at $2.71 billion, slowing from the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.31 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Toll Brothers has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 8.6% on average.
Looking at Toll Brothers’s peers in the home builders segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Skyline Champion delivered year-on-year revenue growth of 35.1%, beating analysts’ expectations by 4.6%, and NVR reported revenues up 11.7%, topping estimates by 2.6%. Skyline Champion traded up 11.1% following the results while NVR was down 2.9%.
Read the full analysis of Skyline Champion’s and NVR’s results on StockStory.
Inflation fears have put pressure on growth stocks, and while some of the home builders stocks have fared somewhat better, they have not been spared, with share prices down 4.7% on average over the last month. Toll Brothers is down 3.4% during the same time and is heading into earnings with an average analyst price target of $136.4 (compared to the current share price of $129.5).