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Toll Brothers (TOL) is scheduled to report its Q3 2012 results on Aug. 22, 2012, after the closing bell. The Street expects EPS and revenue of $0.18 and $508.98 million, respectively.

In this article I will recap Toll Brothers' historical results, its latest EPS estimates vs. surprises, the latest news from the company, and news from its closest competitors.

Toll Brothers Inc. Revenue and Net Income History

Recent EPS: Actual Vs. Estimates

In the last quarter it reported EPS of $0.10, beating analyst estimates of $0.04.

Toll Brothers Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.18 based on 20 analysts' estimates, down from $0.25 a year ago. Revenue estimates are $508.98 million, up from $394.30 million a year ago. The median analyst target price for the stock is $31.75.

Average Recommendation: Overweight

Source: MarketWatch.

Analyst Upgrades and Downgrades

  • On June 12, 2012, Compass Point reiterated Neutral rating for the company.
  • On Feb. 23, 2012, RBC Capital Markets reiterated Sector Perform rating for the company.

Latest News

  • On June 19, 2012, Toll Brothers and Shea Baker Ranch LLC, a member of the Shea family of companies, announced a partnership to develop Baker Ranch, a master-planned community approved for over 2,000 new homes in Lake Forest, Calif. -- one of south Orange County's desirable markets.
  • On May 23, 2012, Toll Brothers announced results for earnings, revenues, contracts and backlog for its second quarter and first six months ended April 30, 2012. The company reported FY 2012 second-quarter net income of $16.9 million, or $0.10 per share, compared to a FY 2011 second-quarter net loss of $20.8 million, or $0.12 per share. FY 2012's second quarter included a net tax benefit of $1.2 million, compared to a net tax benefit of $10.7 million in FY 2011's second quarter.
  • On Feb. 17, 2012, Toll Brothers Finance Corp., a wholly owned subsidiary of Toll Brothers, announced that it has extended the early participation date relating to its registered offer to exchange new 5.875% Senior Notes due Feb. 15, 2022, (the New Notes) for any and all of its currently outstanding 6.875% Senior Notes due 2012 (the 2012 Notes) and 5.95% Senior Notes due 2013 (the 2013 Notes and, together with the 2012 Notes, the Outstanding Notes) to 12:00 midnight, New York City time, on March 2, 2012 -- the same time as the expiration date for the exchange offer.

Competitors

Hovnanian Enterprises (HOV), KB Home (KBH), PulteGroup (PHM), Ryland Group (RYL), and Standard Pacific (SPF) are considered major competitors for Toll Brothers. The table below provides the key metrics for these companies and the industry.

Toll Brothers Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one-year period.

TOL Chart

Competitors' Latest Developments

  • On Aug. 1, 2012, Standard Pacific announced the pricing of its previously announced public offering of convertible senior notes due 2032, and the increase of the offering size to $220 million aggregate principal amount.
  • On July 31, 2012, Standard Pacific announced the proposed public offering by the company of $150 million aggregate principal amount of convertible senior notes due 2032.
  • On July 27, 2012, The Ryland Group announced that it has declared a quarterly dividend of $0.03 per share, payable on Oct. 30, 2012, to common stockholders of record on Oct. 15, 2012.
  • On July 19, 2012, KB Home announced that it has declared a quarterly cash dividend of $.025 per share on the company's common stock, payable on Aug. 16, 2012 to stockholders of record on Aug. 2, 2012.
  • On July 18, 2012, KB Home announced that it has acquired land within the Elworthy Ranch property in the town of Danville. Development of the site will begin in the coming months, with an anticipated groundbreaking on new model homes before the end of the year.
  • On July 3, 2012, The Ryland Group announced that it has completed the acquisition of the Charlotte and Raleigh operations and assets of Timberstone Homes. The Timberstone acquisition provides Ryland with approximately 945 additional lots and homes for future sales, 141 homes sold and under construction for delivery, and 19 professionally decorated model homes.
  • On June 29, 2012, KB Home announced that it expects to continue to report positive operating earnings for fiscal 2012, excluding impairment and land option contract abandonment charges.
  • On June 21, 2012, The Ryland Group announced that it has entered into an agreement to acquire the Charlotte and Raleigh operations and assets of Timberstone Homes.
  • On May 16, 2012, The Ryland Group announced the completion of its offering and sale of $225 million aggregate principal amount of 1.625% Convertible Senior Notes due 2018.
  • On May 11, 2012, The Ryland Group announced that it has priced an underwritten public offering of $200 million aggregate principal amount of 1.625% Convertible Senior Notes due 2018, which was upsized from the previously announced $150 million offering.
  • On April 27, 2012, The Ryland Group announced that its board of directors has declared a second quarter dividend of $0.03 per share, payable on July 30, 2012, to common stockholders of record on July 16, 2012.
  • On April 17, 2012, The Law Firm of Levi & Korsinsky, LLP announced that it is investigating KB Home and its board of directors in connection with the compensation provided to certain executive officers.
  • On April 13, 2012, KB Home announced that it declared a quarterly cash dividend of $0.025 per share on the company's common stock, reflecting its decision to reduce the company's quarterly cash dividend from $0.0625 per share.
  • On April 5, 2012, Hovnanian Enterprises announced that it priced its previously announced offering of 25,000,000 shares of its Class A Common Stock at $2.00 per share, resulting in net proceeds of approximately $47 million.
  • On April 3, 2012, Hovnanian Enterprises announced the commencement of a registered underwritten public offering of Class A Common Stock. The offering is anticipated to consist of the issuance of 25,000,000 shares of the company's Class A Common Stock.
  • On March 23, 2012, KB Home announced that it expects to have a positive operating income for fiscal 2012.
  • On March 8, 2012, The Ryland Group announced that it amended the record date for the $0.03 per share dividend, payable April 30, 2012, from April 15, 2012, to April 16, 2012.
  • On March 2, 2012, The Ryland Group announced that the board of directors declared a first quarter dividend of $0.03 per share, payable on April 30, 2012, to common stockholders of record on April 15, 2012.

Technical Overview


The stock has a market capitalization of $5.11 billion and is currently trading at $30.48, with a 52-week range of $13.16 to $31.34. The stock's year-to-date performance has been 49.27%. It is currently trading above 20-day, 50-day and 200-day SMAs.

Data sourced from Yahoo Finance, Google Finance, MarketWatch, Finviz, and Reuters.

Source: Earnings Preview: Toll Brothers