Toll Brothers Inc. Earnings Cheat Sheet: Loss Narrows

Toll Brothers Inc. (NYSE:TOL) reported its results for the second 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 Second Quarter

Results: Loss narrowed to $20.8 million (loss of 12 cents/diluted share) from $40.4 million (loss of 24 cents/share) in the same quarter a year earlier.

Revenue: Rose 2.7% to $319.7 million YoY.

Actual vs. Wall St. Expectations: TOL fell short of the mean analyst estimate of a loss of 4 cents/share. Estimates ranged from a loss of 16 cents per share to a profit of 3 cents per share.

Quoting Management: Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer, stated: “We continue to see stability, and, in some cases, improvement, across our various luxury product lines. Our target customers generally have remained employed during this downturn, and, with their solid credit profiles, been able to secure mortgages at good rates. However, many have deferred their home buying decisions because of concerns over the direction of the economy and media headlines suggesting that home prices continue to decline. We believe that some of our clients, after waiting so long, are starting to move off the fence and into the market, motivated by attractive pricing, low interest rates and, most importantly, the desire to take the next step in their lives.”

Key Stats:

TOL’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $3.4 million in the first quarter, a profit of $50.5 million in the fourth quarter of the last fiscal year and $27.3 million in the third of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In first quarter, revenue increased 2.3% to $334.1 million from the year earlier 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), Standard Pacific Corp. (NYSE:SPF), Hovnanian Enterprises, Inc. (NYSE:HOV), NVR, Inc. (NYSE:NVR), Beazer Homes USA, Inc. (NYSE:BZH), and M/I Homes, Inc. (NYSE:MHO)

Stock Performance: Shares of TOL are up 15 cents from the previous close of $20.27.

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(Sources: YahooFinance, Xignite Financials)