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Toll Brothers Inc. (TOL)

  • Thu, Sep. 24, 10:15 AM
    • SIngle-family new home sales in August at a seasonally-adjusted annualized rate of 552K were up 5.7% from July (itself upwardly revised to 522K from 505K). August's pace was also up 21.6% from a year ago.
    • By region, Northeast sales of 36K rose from 29K, Midwest to 60K vs. 66K, South 319K from 297K, and West 137K vs. 130K.
    • Despite the strong August results, homebuilders remain lower alongside the broader market.
    • Leading the way lower is KB Home (KBH -3.4%) which reported an earnings beat this morning, but rising land costs did eat into profit margins.
    • ETFs: ITB, XHB
    • Toll Brothers (TOL -0.4%), PulteGroup (PHM -0.8%), Lennar (LEN -0.9%), D.R. Horton (DHI -0.8%), Standard Pacific (SPF -1.6%), Taylor Morrison (TMHC -1.5%).
    | Thu, Sep. 24, 10:15 AM | 3 Comments
  • Thu, Sep. 17, 3:49 PM
    • Outperforming alongside the big dividend payers are the homebuilders after the FOMC refrained from hiking rates today, but still all but promises tighter policy before the year is out. The big gains in homebuilders are in contrast to the S&P 500 which is flat.
    • The inaction has sparked a major rally in bonds across the curve, with the 10-year yield lower by ten basis points to 2.20% and the two-year yield down a full twelve basis points to 0.68%.
    • Earlier today, August housing starts disappointed, and July starts were revised sharply lower.
    • Previously: August housing starts disappoint; July revised sharply lower (Sept. 17)
    • Toll Brothers (TOL +1.2%), Lennar (LEN +1.5%), Hovnanian (HOV +6%), PulteGroup (PHM +1.1%), Ryland (RYL +2.1%), D.R. Horton (DHI +2%), KB Home (KBH +2%)
    • ETFs: ITB, XHB
    | Thu, Sep. 17, 3:49 PM | 4 Comments
  • Tue, Sep. 15, 1:28 PM
    • Despite worries about a wash of apartment construction over the past five years, a high occupancy rate has builders Lennar (NYSE:LEN) and Toll Brothers (NYSE:TOL) doubling down in the market.
    • Toll plans to literally double its apartment-development division and expand its from the northeast corridor across the country. In Lennar's case, it's built a $1.1B war chest for construction in 25 markets and wants to expand it to $2B within a year.
    • The long-term annual average in apartment building is 120,000/year; meanwhile, developers in 79 markets built 173K units last year, and are expected to build 220K this year and 190K next year.
    • Vacancy rates, though, have been at 15-year lows (about 4.2%) while rents have steadily risen to 15-year highs ($1,194/month in 79 markets). And the percentage of people "doubled up" (living with a non-spouse adult) rose to 48% this year from 44% in 2007, suggesting many will seek their own rental.
    • Lennar and Toll reps say they're being conservative, and the market isn't peaking yet.
    | Tue, Sep. 15, 1:28 PM | 4 Comments
  • Fri, Sep. 11, 8:04 AM
    • As a group, the three are higher on the year, but are considerably lower since April 1, with Meritage Homes (NYSE:MTHoff 22%, Toll Brothers (NYSE:TOL6%, and PulteGroup (NYSE:PHM7.8%.
    • All three are upgraded to Neutral from Underweight.
    • Alongside these moves, JPMorgan also downgraded two other homebuilders.
    | Fri, Sep. 11, 8:04 AM | 1 Comment
  • Tue, Aug. 25, 8:37 AM
    • Toll Brothers (NYSE:TOL) is 2.4% lower premarket after posting a miss on its FQ3 revenues and profits.
    • Net income slipped nearly 32%, to $66.7M. While revenues fell 3%, net signed contracts were up 30% in dollar terms, to $1.23B, and up 12% in terms of units, to 1,479.
    • Backlog of $3.69B (up 19%) and 4,447 units (up 6%), the highest backlog for any quarter's end in eight years. Average price of homes in backlog was $829K, over $800K for the first time.
    • Gross margin of 19.8% was down from a year-ago 22.7%.
    • The company guided to fiscal Q4 deliveries of 1,645-1,945 at average price of $780K-$800K, which narrows its guidance on full-year deliveries to 5,350-5,650 homes at average price of $745K-$760K.
    • The company will discuss the results and its full-year outlook on a conference call to come at 11 a.m. ET.
    • Press Release
    | Tue, Aug. 25, 8:37 AM | 3 Comments
  • Tue, Aug. 25, 5:13 AM
    • Toll Brothers (NYSE:TOL): FQ3 EPS of $0.36 misses by $0.13.
    • Revenue of $1.03B (-2.8% Y/Y) misses by $20M.
    • Press Release
    | Tue, Aug. 25, 5:13 AM | Comment!
  • Mon, Aug. 24, 5:30 PM
  • Mon, Aug. 17, 4:33 PM
    • Major stock indexes rebounded from opening declines to finish modestly higher, after a solid housing report showed some strength on a lightly traded Monday.
    • Homebuilding stocks paced gainers, including Toll Brothers (TOL +2.3%); Ryland (RYL +2.1%); KB Home (KBH +3.1%), Lennar (LEN +2.7%) and Taylor Morrison Home (TMHC +2.9%).
    • The S&P 500 gained 0.5% to 2,102.44; for 2015, it's up 2.12%. The move up came despite a grim reading from New York manufacturing that sent bond yields lower. TLT +0.5%; TBT -0.8%.
    • Volumes overall were about 20% below recent average.
    • Sector gains were broadly distributed, with a flat energy sector as the laggard. Healthcare stocks performed well, paced by dollar volume leaders Gilead Sciences (GILD +0.7%), Johnson & Johnson (JNJ +1.1%) and Biogen (NASDAQ:BIIB) +1.1%.
    | Mon, Aug. 17, 4:33 PM | 12 Comments
  • Wed, Jul. 22, 10:36 AM
    • In the latest data point signaling the housing recovery has shifted into another gear, the NAR earlier reported a 3.2% gain in the seasonally adjusted annualized rate of existing home sales to 5.49M in June.
    • Sales are at their highest pace since February 2007 and are 9.6% above the pace of one year ago.
    • The median price of $236.4K is up 6.5% Y/Y and surpasses the peak set in July 2006.
    • ETFs: ITB +1.5%, XHB +1.5%
    • Toll Brothers (TOL +2%), Lennar (LEN +1.7%), KB Home (KBH +1.9%), Pulte (PHM +2.1%), D.R. Horton (DHI +2.1%), Hovnanian (HOV +0.9%), Ryland (RYL +3.1%)
    • Previously: Existing home sales rise to fastest pace in eight years (July 22)
    | Wed, Jul. 22, 10:36 AM | 17 Comments
  • Fri, Jul. 17, 9:57 AM
    • A combination of sluggish job growth and abundant supply has made Washington, D.C. one of the worst U.S. markets for landlords, but rebounding employment is leading to renewed development.
    • Toll Brothers (NYSE:TOL) plans to more than double its stock of apartments over the new three years, Camden Property Trust (NYSE:CPT) has 862 units under construction, and AvalonBay (NYSE:AVB) is boosting its investment in what may be a coming hot neighborhood. The nation's largest apartment REIT, Equity Residential (NYSE:EQR) is set to start work on a 174-unit building in Georgetown stalled since 2012. Still a bit wary, UDR is buying rather than building - last month it agreed to acquire six suburban communities from Home Properties.
    • Effective rents fell 1.4% in 2013, and rose just 0.4% last year - enough to scare off smaller players. REITs however, have access to relatively cheap capital, giving them the opportunity to step in while the market is soft to hopefully take advantage of the next upturn.
    • According to Axiometrics, effective rents will climb 3.4% in 2016 versus 2.9% for the entire country. 2107 should see a 4.5% increase, with 3.6% estimated for 2018.
    • Source: Bloomberg
    • Previously: Multi-family action leads gain in housing starts (July 17)
    | Fri, Jul. 17, 9:57 AM | 2 Comments
  • Wed, Jun. 24, 9:47 AM
    | Wed, Jun. 24, 9:47 AM | 3 Comments
  • Fri, Jun. 19, 10:09 AM
    • KB Home CEO Jeffrey Mezger is confident of his company's ability to achieve "measurable year-over-year earnings growth in H2" after reporting new order growth of 33% in units and 38% in dollars in FQ2, and backlog growth of 39% in units and 57% in dollars.
    • KB Home is up 6%, leading the ITB +1.4%, and XHB +0.8% even as the major averages slip.
    • Toll Brothers (TOL +2.3%), Hovnanian (HOV +2.7%), Lennar (LEN +3%), Ryland (RYL +2%), D.R. Horton (DRI +2.5%), Pulte (PHM +2.5%)
    • Previously: KB Home gains following earnings beat (June 19)
    • Previously: KB Home beats by $0.02, beats on revenue (June 19)
    | Fri, Jun. 19, 10:09 AM | Comment!
  • Mon, Jun. 15, 9:44 AM
    • Zigging higher while the rest of the market zags sharply lower are the homebuilders following this weekend's merger of Ryland Homes and Standard Pacific.
    • While there have been a number of smaller deals over the past year, this one is more sizable, setting off hope of a broader - and necessary, according to some - consolidation in the fragmented sector.
    • Lennar (LEN +1.9%), Toll Brothers (TOL +1.4%), M.D.C. Holdings (MDC +2.3%), M/I Homes (MHO -0.5%), NVR (NVR), D.R. Horton (DHI +1.5%), KB Home (KBH +0.7%), Beazer Homes (BZH +1.2%), PulteGroup (PHM +1.6%), Hovnanian (HOV flat)
    • Previously: Industry eyes Ryland/Standard Pacific merger (June 15)
    | Mon, Jun. 15, 9:44 AM | 4 Comments
  • Thu, Jun. 11, 7:42 AM
    • Credit Suisse buys the dip in Toll Brothers (NYSE:TOL), upgrading to Outperform as it cites the Street is underestimating the boost to business in 2016 from Toll's City Living operation.
    | Thu, Jun. 11, 7:42 AM | Comment!
  • Tue, Jun. 9, 10:14 AM
    • The usually sunny Ara Hovnanian found himself unable to put lipstick on his company's pig of a quarter and the stock is lower by 14.4% in early action (the conference call begins at 11 ET).
    • Topping off the poor results, interest rates are back on the rise, with the 10-year Treasury yield hitting a new high for the year at 2.44%.
    • The other homebuilders are acting as if HOV's issues are company-specific: Toll Brothers (TOL -0.2%), Lennar (LEN -0.2%), PulteGroup (PHM -0.6%), D.R. Horton (DHI -0.2%), KB Home (KBH -0.8%), Ryland (RYL -0.6%), Standard Pacific (SPF flat).
    • ETFs: ITB -0.2%, XHB -0.3%
    | Tue, Jun. 9, 10:14 AM | 3 Comments
  • Wed, May 27, 10:43 AM
    | Wed, May 27, 10:43 AM | 1 Comment
TOL vs. ETF Alternatives
Company Description
Toll Brothers Inc designs, builds, markets and arranges financing for single-family detached and attached homes in luxury residential communities.