Toll Brothers Inc. Earnings Cheat Sheet: Higher-Than-Expected Net Income

Toll Brothers Inc. (NYSE:TOL) reported net income above Wall Street’s expectations for the third quarter. Toll Brothers, Inc. designs, builds, markets and arranges financing for single-family detached and attached homes in luxury residential communities.

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Toll Brothers Earnings Cheat Sheet for the Third Quarter

Results: Net income for Toll Brothers Inc. rose to $42.1 million (25 cents per share) vs. $27.3 million (16 cents per share) in the same quarter a year earlier. This marks a rise of 54.2% from the year earlier quarter.

Revenue: Fell 13.2% to $394.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TOL beat the mean analyst estimate of 3 cents per share. It fell short of the average revenue estimate of $406.3 million.

Quoting Management: Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer, stated: “It is too soon to assess the ramifications of the financial volatility of the past few weeks on the housing market. While late summer is generally not the best time to sell homes, in the short run, the stock market gyrations, the budget impasse, and the U.S. Government bond rating downgrade are certainly not helping consumer confidence. However, we believe that historic low interest rates and the growing imbalance between housing production and demographics-driven demand bode well for the industry sooner or later: the key question, of course, is when.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by one cent, and in the first quarter, it fell short by 2 cents.

A year-over-year revenue decrease last quarter snaps a streak of two consecutive quarters of revenue increases. Revenue rose 2.7% in the second quarter and 2.3% in the first quarter.

Competitors to Watch: PulteGroup, Inc. (NYSE:PHM), M.D.C. Holdings, Inc. (NYSE:MDC), D.R. Horton, Inc. (NYSE:DHI), KB Home (NYSE:KBH), Lennar Corporation (NYSE:LEN), Comstock Homebuilding Companies, Inc. (NASDAQ:CHCI), Meritage Homes Corporation (NYSE:MTH), The Ryland Group, Inc. (NYSE:RYL), and Standard Pacific Corp. (NYSE:SPF).

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(Source: Xignite Financials)