Toll Brothers Inc. Fourth Quarter Earnings Sneak Peek

Toll Brothers, Inc. (NYSE:TOL) will unveil its latest earnings on Tuesday, December 4, 2012. Toll Brothers designs, builds, markets and arranges financing for single-family detached and attached homes in luxury residential communities.

Toll Brothers, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 23 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 22 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 23 cents during the last month. For the year, analysts are projecting net income of 68 cents per share, a spike from net loss of 5 cents last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 26 cents per share against the mean estimate of 18 cents. In the prior quarter, the company reported net income of 10 cents.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the third quarter, profit rose 46.4% to $61.6 million (36 cents a share) from $42.1 million (25 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 40.6% to $554.3 million from $394.3 million.

Wall St. Revenue Expectations: Analysts predict a rise of 32.4% in revenue from the year-earlier quarter to $566.5 million.

Stock Price Performance: Between October 30, 2012 and November 28, 2012, the stock price dropped $1.85 (-5.5%), from $33.82 to $31.97. The stock price saw one of its best stretches over the last year between August 1, 2012 and August 9, 2012, when shares rose for seven straight days, increasing 6.3% (+$1.83) over that span. It saw one of its worst periods between September 21, 2012 and October 1, 2012 when shares fell for seven straight days, dropping 8.9% (-$3.25) over that span.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 16.9% in the second quarter before climbing again in the third quarter.

Analyst Ratings: With seven analysts rating the stock as a buy, two rating it as a sell and six rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.49 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Green Mountain Results Perk Up Short-Sellers

Nail in the Coffin for the Housing Recovery Story?

Will Research In Motion’s Stock Ever Return To Prominence?