Homebuilding company Toll Brothers (NYSE: TOL) will be reporting earnings this Tuesday after market close. Here’s what to expect.
Toll Brothers beat analysts’ revenue expectations last quarter, reporting revenues of $2.53 billion, down 7.6% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates.
Is Toll Brothers a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Toll Brothers’s revenue to decline 11.1% year on year, a reversal from the 8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Toll Brothers rarely misses Wall Street’s revenue estimates.
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. Installed Building Products delivered year-on-year revenue growth of 2.3%, beating analysts’ expectations by 4.4%, and LGI Homes reported revenues up 3.7%, topping estimates by 2.9%. Installed Building Products traded up 1.1% following the results while LGI Homes was also up 9.6%.
Read our full analysis of Installed Building Products’s results here and LGI Homes’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 4.6% on average over the last month. Toll Brothers is up 1.1% during the same time and is heading into earnings with an average analyst price target of $168.20 (compared to the current share price of $148.50).
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