Toll Brothers (TOL) Stock Enters Stratosphere after Q3 Numbers as Analysts Sing Praises
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Price: $36.92 +2.19%
Rating Summary:
10 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
10 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade TOL Now!
Shares of Toll Brothers, Inc. (NYSE: TOL) are moving higher early on Wednesday after the company crushed earnings. The company reported EPS of 36c, doubling analyst estimates of 18c. Revenue for the quarter came in at $554.3 million versus the consensus estimate of $508.98 million. In 2011, Toll Brothers reported revenue of $394.3 million.
Shares of Toll Brothers are higher by over 100 percent in the past 12 months, so it is clear investors have priced in positive results. However, considering the stock’s 5 percent pop following the EPS print, it is also clear that there is still upside.
The company expects to deliver 800-1,000 homes during 4QFY12, taking FY12 delivery guidance to 3,000-3,200 homes from 2,700-3,200 homes previously. The results have analysts and investors singing praises for the company and its management. Analysts at Goldman Sachs called Toll Brothers results "outstanding."
"We expect TOL to outperform the group on these strong results and expect the group to trade up to reflect continued strong July/August demand," said Joshua Pollard. On the heals of positive earnings report, Goldman reiterated a Buy rating on the Toll Brothers.
Management is also very upbeat. "We believe the housing recovery is being driven by pent-up demand, very low interest rates and attractively priced homes. Customers who have postponed buying for a number of years are moving into the market. With an industry-wide shortage of inventory in many markets, we are enjoying some pricing power, said Douglas C. Yearley, chief executive officer.
For now, the headline for homebuilders is Toll Brother's earnings. Later this week investors will be focused on housing data, including the housing price index and July new home sales. Today investors received info on existing home sales, which came in slightly below expectations at 4.47 million vs. 4.51 million expected.
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Shares of Toll Brothers are higher by over 100 percent in the past 12 months, so it is clear investors have priced in positive results. However, considering the stock’s 5 percent pop following the EPS print, it is also clear that there is still upside.
The company expects to deliver 800-1,000 homes during 4QFY12, taking FY12 delivery guidance to 3,000-3,200 homes from 2,700-3,200 homes previously. The results have analysts and investors singing praises for the company and its management. Analysts at Goldman Sachs called Toll Brothers results "outstanding."
"We expect TOL to outperform the group on these strong results and expect the group to trade up to reflect continued strong July/August demand," said Joshua Pollard. On the heals of positive earnings report, Goldman reiterated a Buy rating on the Toll Brothers.
Management is also very upbeat. "We believe the housing recovery is being driven by pent-up demand, very low interest rates and attractively priced homes. Customers who have postponed buying for a number of years are moving into the market. With an industry-wide shortage of inventory in many markets, we are enjoying some pricing power, said Douglas C. Yearley, chief executive officer.
For now, the headline for homebuilders is Toll Brother's earnings. Later this week investors will be focused on housing data, including the housing price index and July new home sales. Today investors received info on existing home sales, which came in slightly below expectations at 4.47 million vs. 4.51 million expected.
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