Thu, Jan. 15, 11:31 AM
- The company earlier reported bottom-line results which beat estimates, but the top line slightly missed.
- FQ4 (ending Nov. 30) deliveries of 6,950 homes gained 23% from a year ago. New orders of 5,492 homes up 22%, up 24% in dollar terms. ASP of $329K vs. $307K a year ago. Incentives of 23.1K per home, or 6.6% of home sales revenue vs. $20.6K and 6.3% a year ago.
- Backlogs of 5,832 homes up 21%, up 22% in dollar terms.
- Gross margins of 25.6% fell 120 basis points from a year ago. Operating margin of 16% down 90 bps.
- Like KB Home earlier this week, Lennar (LEN -4%) warns of lower gross margins for fiscal 2015.
- ITB -2.9%, XHB -2.2%
- Toll Brothers (TOL -2.7%), Hovnanian (HOV -5.3%), D.R. Horton (DHI -4.9%), Ryland (RYL -4.7%), KB Home (KBH -5.5%), Pulte (PHM -4.3%) M.D.C. Holdings (MDC -5.9%), NVR (NVR -2.5%), Standard Pacific (SPF -3.2%)
- Previously: Lennar beats by $0.11, misses on revenue (Jan. 15)
Tue, Jan. 13, 11:48 AM
- Up earlier after reporting a strong FQ4, KB Home (KBH -12.2%) goes into the tank as the earnings call begins and management warns on margins.
- Webcast here
- Some homebuilders are red, some are green, but all are well off session highs in sympathy: Hovnanian (HOV -2.7%), D.R. Horton (DHI -2.3%), Toll Brothers (TOL +0.3%), PulteGroup (PHM -0.6%), Ryland (RYL +0.2%)
- ETFs: ITB, XHB
- Previously: KB Home up 4.4% after strong FQ4 results (Jan. 13)
Wed, Jan. 7, 11:04 AM
- Bloomberg is reporting the president as set to announce a 50 basis point reduction in FHA fees to 0.85% at an event in Phoenix tomorrow. The news isn't good for private mortgage insurers who have been happily raking in market share gains at the expense of the government agency, but the homebuilders are a different story.
- Previously: Mortgage insurers tumble on report of cut in FHA premiums (Jan. 7)
- ETFs: ITB +3%, XHB +2.5%
- Toll Brothers (TOL +2.7%), Lennar (LEN +3.8%), D.R. Horton (DHI +4%), Ryland (RYL +2.9%), KB Home (KBH +2.5%), Hovnanian (HOV +3.6%), PulteGroup (PHM +3.9%).
Dec. 12, 2014, 10:56 AM| 2 Comments
Dec. 10, 2014, 3:53 PM
- "Why 2014 was a pause and flat to 2013 and not improving has been a bit puzzling," says Toll Brothers (TOL -7.6%) management on the earnings call.
- Asked about the impact of tumbling energy prices on markets like Dallas and Houston, management says the company's exposure there is small, with Houston accounting for 3.7% of signed contracts.
- Overall, Toll expects the housing recovery to be "bumpy," and that demand will truly return when buyers no longer fear price drops.
- Previously: Toll Brothers slips on FQ4 miss (Dec. 10, 2014)
- It's a different story (at least for the stock price) with Hovanian (HOV +5.9%) after its earning report today. Management: "It's an understatement to say that the past 12 months have been choppy ... Given the gains we've seen in employment, we would have expected stronger home sales."
- Previously: Hovnanian pops as fiscal 2015 starts off strong (Dec. 10, 2014)
- Other builders today: Ryland (RYL -5.1%), Lennar (LEN -5.3%), Beazer (BZH -5.1%), Pulte (PHM -3.5%), KB Home (KBH -5.1%).
- ETFs: ITB -3.4%, XHB -2.5%
Dec. 10, 2014, 8:33 AM
- FQ4 net income takes a hit from $10.8M of inventory impairments, and a $32M warranty and litigation charge over projected stucco-related repairs at older homes in certain PA and DE communities.
- FQ4 home building deliveries (1,807 units) up 29% in dollars and 22% in units from a year ago. ASP of $747K vs. $703K.
- Net signed contracts of $970.8M and 1,282 units up 16% and 10% Y/Y, respectively. ASP of $757K vs. $721K.
- Backlog of $2.72B and 3,679 units up 3% in dollars and flat in units from a year ago.
- Gross margin, excluding interest and inventory write-downs of 25.5% vs. 25.4% one year ago.
- Conference call at 2 ET
- Previously: Toll Brothers misses by $0.02, beats on revenue
- TOL -0.8% premarket
Dec. 10, 2014, 6:00 AM
Dec. 9, 2014, 5:30 PM
Nov. 10, 2014, 7:55 AM
- The early results are being released in conjunction with Toll's (NYSE:TOL) presentation at a conference to take place on Thursday. The full report is set for December 10.
- Fiscal Q4 revenue of $1.35B and 1,087 units up 29% in dollar terms and 22% in unit terms Y/Y. ASP of $747K vs. $703K a year ago.
- Net signed contracts of $970.2M and 1,282 units up 16% in dollar terms and 10% in units Y/Y. ASP of net contracts of $757K vs. $721K a year ago. On a per-community basis, net signed contracts of 5.01 compares to 5.17 a year ago.
- Backlog of $2.72B and 3,679 units up 3% in dollars and flat in units Y/Y.
- Source: Press release
- Shares +1.5% premarket
Sep. 17, 2014, 10:04 AM
- Lennar's sizable earnings beat included a 23% gain in new orders - a strong result given the slowdown seen from some other builders.
- Previously: Lennar up 4.3% after reporting big quarter
- ETFs: ITB +2.6%, XHB +1.8%
- Individual players: Ryland (RYL +4.8%) Pulte (PHM +3.8%), Toll Bros. (TOL +3.2%), D.R. Horton (DHI +4%), Hovnanian (HOV +5.8%), KB Home (KBH +4.4%), Comstock (CHCI +4.2%), Standard Pacific (SPF +3.8%).
Sep. 3, 2014, 10:08 AM
- "We have seen some lessening of pricing power in the past year," says Toll Brothers (TOL -2.6%) chief Douglas Yearley, quickly adding the company does not yet see the need to boost incentives to spur sales.
- Fiscal 2014 guidance: Deliveries now expected at 5.3K-5.5K homes from 5.1K-5.85K previously (midpoint drops to 5.4K from 5.475K); ASP of deliveries of $710K-$725K from $690-$720K.
- Gross margin is expected to be 185-200 bps higher than 2013 vs. previous guidance of 175-200 bps improvement.
- Expected selling communities is now at 255-275 vs. 250-290 previously.
- Previously: Toll Brothers beats by $0.08, beats on revenue
Sep. 3, 2014, 7:11 AM
- Net income jumped 110% to $97.7M, or $0.53 per share, from $46.6M, or $0.26 per share, a year earlier.
- The company sold 1,444 homes in the third quarter ended July 31, up from 1,059 in the same period a year ago. Average selling price rose 12% to $732,000.
- Backlog of $3.1B and 4,204 units vs. FY 2014's third-quarter-end backlog of $2.8B and 4,001 units.
- FQ3 results
- TOL +2.3% premarket
Sep. 3, 2014, 5:49 AM
Sep. 2, 2014, 5:30 PM
Aug. 19, 2014, 10:31 AM
- A far-faster-than-expected 15.7% gain in housing starts in July has the homebuilders sharply higher. Lenner (LEN +2.6%), Comstock (CHCI +5.8%), Ryland (RYL +2.4%), Hovnanian (HOV +3.2%), D.R. Horton (DHI +2.1%), Toll Bros. (TOL +1.4%), PulteGroup (PHM +1.1%), KB Home (KBH +1.9%).
- Commenting on the number, Bill McBride notes starts in Q1 averaged 925K on a seasonally-adjusted annualized rate, 997K in Q2, and that Q3 appears to be off to a solid start (1.093M in July). By year's end, McBride expects 2014 housing starts to increase by a double-digit pace over a weak 2013.
Jul. 24, 2014, 10:09 AM
- The ITB is lower by 1.5% and the XHB by 0.7% with earlier earnings misses from Pulte (PHM -1.5%) and D.R. Horton (DHI -5%). and just-released disappointing new home sales data weighing. Also reporting this morning was M/I Homes (MHO -3.2%), and that company beat estimates.
- June single-family new home sales of 406K fell 8.1% from May's rate of 442K (which was revised down from 504K). Expectations for June sales were 479K.
- The supply of new homes rises to 5.8 months at June's sales pace from 5.2 months previously.
- Other names: Lennar (LEN -1.6%), Ryland (RYL -2.3%), Standard Pacific (SPF -2%), Hovnanian (HOV -0.9%), Toll Brothers (TOL -2.2%).
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