Toll Brothers, Inc. (NYSE: TOL)
Toll Brothers, Inc. is set to report its second quarter financial results on Tuesday, May 24 2016 before the market open. Analysts are expecting the company to post earnings of $.48 a share and revenue of $1.04B.
Hearbeat of Housing
In April 2016, US housing starts rose to 1.2M from 1.1M which was also above the street’s expectations of 1.1M. This increase also remained consistent for for single and multi-family housing starts. These most recent numbers help to gauge the most current state of the housing market and may indicate future growth. However, will the growth be in the right segment for Toll Brothers to benefit? It will be interesting to see if Toll Brothers most recent focus on high end apartment developments in prominent cities will pay off.
TOL Executive Comments
Robert Toll, Chief Executive Chairman noted,
“The stock market seems to be pricing in a steep decline in the economy and, along with it, our sector. We, on the other hand, are seeing signs that reflect strength and positive momentum in our business based on six consecutive quarters of year-over-year contract growth in both dollars and units… Industry-wide housing starts remain far below normal, and new home supply remains constrained.Interest rates are very attractive, unemployment is the lowest since 2008, and home values are rising.”
Robert Yearly, Chief Executive Officer followed up by saying,
“Deposits and contracts signed in the first three weeks of February, the start of our second quarter, were basically flat compared to the prior year. This is understandable given the recent stock market decline and global economic uncertainty.Positively, traffic was up 13% over the same three weeks and appears to be improving in quality, which gives us reason for optimism for the balance of the spring selling season.”
About Toll Brothers, Inc.
Toll Brothers, Inc., incorporated on May 28, 1986, is a property development company. The Company is engaged in designing, building, marketing and arranging finance for detached and attached homes in luxury residential communities. The Company caters to move-up, empty-nester, active-adult, age-qualified and second-home buyers in the United States. The Company also builds and sells homes in urban infill markets through Toll City Living community. The Company operates on own land development, architectural, engineering, mortgage, title, landscaping, security monitoring, lumber distribution, house component assembly, and manufacturing operations. The Company also develops, owns and operates golf courses and country clubs, which are associated with planned communities. – Reuters