Toll Brothers, Inc. Third Quarter Earnings Sneak Peek

Toll Brothers, Inc. (NYSE:TOL) will unveil its latest earnings on Wednesday, August 24, 2011. Toll Brothers, Inc. 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 net income of 3 cents per share, a decline of 81.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 5 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 3 cents during the last month. For the year, analysts are projecting profit of one cent per share, a swing from a loss of 71 cents last year.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting net loss of 6 cents per share against an estimate of a loss of 5 cents per share. The quarter before that, it missed expectations by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $406.3 million in revenue this quarter, a decline of 10.6% from the year ago quarter. Analysts are forecasting total revenue of $1.5 billion for the year, a rise of 0.7% from last year’s revenue of $1.49 billion.

Analyst Ratings: Analysts seem relatively indifferent about Toll Brothers with 10 of 16 analysts surveyed maintaining a hold rating.

Key Stats:

Toll Brothers’ loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $20.8 million in the second quarter, a profit of $3.4 million in the first quarter, a profit of $50.5 million in the fourth of the last fiscal year and a profit of $27.3 million in the third quarter of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In second quarter, revenue increased 2.7% to $319.7 million from the year earlier quarter. In the first quarter, the figure rose 2.3%.

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), Orleans Homebuilders (OHBIQ), Meritage Homes Corporation (NYSE:MTH), The Ryland Group, Inc. (NYSE:RYL), and Standard Pacific Corp. (NYSE:SPF).

Stock Price Performance: During July 21, 2011 to August 18, 2011, the stock price had dropped $5.72 (-26.9%) from $21.24 to $15.52. The stock price saw one of its best stretches over the last year between June 15, 2011 and June 23, 2011 when shares rose for seven-straight days, rising 5.8% (+$1.15) over that span. It saw one of its worst periods between July 19, 2011 and July 27, 2011 when shares fell for seven-straight days, falling 6% (-$1.27) over that span. Shares are down $3.48 (-18.3%) year to date.

(Source: Xignite Financials)

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