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 22 with a conference call scheduled for 2:00 pm ET.


Analysts are looking for EPS of 18c and revenue of $508.98M. The consensus range is 11c-25c for EPS, and $456M-$561.2M for revenue, according to First Call. Toll reported mixed results in Q2, beating EPS but missing revenue estimates. Management offered a cautiously optimistic view on the housing market, saying it had "moved into a new, stronger phase of recovery." The company anticipated delivering 2,700-3,200 homes in FY12, with 10% more homes expected in Q4 vs. Q3. Recent sentiment in the stock has been mixed.

Analyst Views

Several firms have issued downgrades over the past three months, but ITG Research expects Toll's Q3 order growth to beat the Street view. The firm anticipates Toll posting Q3 net order growth of 40% and also sees it beating delivery estimates. Toll shares have traded markedly higher since Q2 results were released in late May, advancing from around $25 to a recent $32.32. They made a fresh 52-week high of $32.55 earlier this week, and have rallied more than 100% since making a 52-week low of $13.16 in October of last year. With such a wealth of good news discounted in the shares, investors will need to see exceptional results to justify further commitments.

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