Toll Brothers' Q4 Revenue Forecast Better Than Expected

Luxury homebuilder Toll Brothers reported selected preliminary fourth-quarter financial results early Thursday showing double-digit declines in revenues, contracts and backlog, similar to industry peers. Revenues are expected to fall 36% to $1.17B, compared to analysts' average estimate of $1.13B. Backlog also dropped 36% to $2.85B. Toll signed 32% fewer contracts (total 1,073) worth 38% less (total $693.7B) compared to last Q4. Toll reported 417 cancellations worth $328.5M, versus 585 valued at $412.3M last year. Average price per unit for contracts signed during Q4 was off 3.1% to $646,000. "We continue to believe that excess supply created by cancellations, speculative buyers, and overly ambitious builders; customer concerns about selling their existing homes; and a general lack of confidence are the primary impediments to our market's recovery," commented CEO Robert Toll. The company is scheduled to report Q4 results on Dec. 6. Shares of Toll Brothers fell 4.3% to $21.03 on Wednesday.

Sources: Associated Press, Bloomberg, MarketWatch
Commentary: Housing Bubble and Real Estate Market Tracker • Hovnanian Reports Double-Digit Decline in Deliveries and Contracts • D.R Horton Q4 Sales: -39%, Cancellations: 48%
Stocks to watch: TOL. Competitors: HOV, DHI, CTX, PHM. ETFs: ITB, XHB

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Comments

[paul:]

Too bad Toll Brothers quality is so bad.

2007 Nov 08 03:46 PM