Toll Brothers: Here’s What Investors Need to Know Before Earnings

Toll Brothers (NYSE:TOL) will report earnings before markets open on Wednesday, May 22nd. Toll Brothers, Inc. builds luxury homes, serving both move-up and empty nester buyers in several regions of the United States. The Company builds customized single and attached homes, primarily on land that it develops and improves. Toll Brothers also operates its own architectural, engineering, mortgage, title, security, landscape, insurance brokerage, and manufacturing operations.

Here is your Cheat Sheet to Toll Brothers Earnings:

Earnings Expectations: Analysts expect earnings of $0.07 per share on revenues of $511.06 million. Currently, the company’s P/E ratio stands at 12.65.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.28 to a profit $0.31. For the current year, the average estimate is a profit of $0.74, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Toll Brothers has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 3,148 1,755 1,495 1,476 1,883
Diluted EPS ($) -1.88 -4.68 -0.02 0.24 2.86

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 321.96 373.68 554.32 632.83 424.60
Diluted EPS ($) -0.02 0.10 0.36 2.354 0.03

Past Performance:
Toll Brothers has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]