Earnings Preview: Toll Brothers

| About: Toll Brothers (TOL)

Toll Brothers (NYSE:TOL) is expected to report Q3 earnings before the market open on Wednesday, August 24 with a conference call scheduled for 2:00 pm ET.


Analysts are looking for EPS of 3c and revenue of $406.28M. The consensus range is (5c)-13c for EPS, and $359.16M-$462.86M for revenue, according to First Call. Toll missed both EPS and revenue estimates in Q2, and offered a cautiously optimistic view on the overall recovery in the housing market. Recent sentiment in the stock has been mixed, mostly due to macro-economic factors.

Analyst Views

On June 8, notable analyst Meredith Whitney forecast double-digit declines in home prices from current levels. On a positive note, on August 22 Goldman Sachs (NYSE:GS) said it expected positive Q3 results for Toll, citing a favorable risk/reward ratio. The stock has traded sharply lower since Q2 results were released in late May, dropping from around $20 to a recent $15. Regardless of Q3 results, in the near term Toll will be subject to the performance of the economy.