Toll Brothers Inc. (TOL) Revenue Plummets
Luxury homebuilder Toll Brothers Inc. reported a 21 percent decline in preliminary homebuilding revenues for the third quarter and said the housing market is so volatile, it won't give earnings guidance.
The sales nonetheless beat analysts expectations and the stock rose $1.16, or 5 percent, to $24.11.
Robert Toll, the homebuilder's usually ebullient and candid chief executive, remains cautious. Nearly two years into the housing slump, which started with defaults by subprime borrowers, most markets remain weak, he said in a statement.
"With the uncertainties roiling the mortgage markets right now, the pace of home sales could slow further until the credit markets settle down," he said.
Analysts said Toll Brothers, which has a mortgage-lending business, isn't as directly affected by subprime borrower problems, but it does have greater exposure to buyers with jumbo loans and those stretching for loans larger than their incomes justify.
Toll, the nation's largest building of luxury homes, expects to report third-quarter homebuilding revenue of $1.21 billion for the quarter, down from $1.5 billion for the same quarter last year, when it releases earnings on Aug. 22.
Analysts surveyed by Thomson Financial on average were expecting revenue of $1.08 billion.
The sales nonetheless beat analysts expectations and the stock rose $1.16, or 5 percent, to $24.11.
Robert Toll, the homebuilder's usually ebullient and candid chief executive, remains cautious. Nearly two years into the housing slump, which started with defaults by subprime borrowers, most markets remain weak, he said in a statement.
"With the uncertainties roiling the mortgage markets right now, the pace of home sales could slow further until the credit markets settle down," he said.
Analysts said Toll Brothers, which has a mortgage-lending business, isn't as directly affected by subprime borrower problems, but it does have greater exposure to buyers with jumbo loans and those stretching for loans larger than their incomes justify.
Toll, the nation's largest building of luxury homes, expects to report third-quarter homebuilding revenue of $1.21 billion for the quarter, down from $1.5 billion for the same quarter last year, when it releases earnings on Aug. 22.
Analysts surveyed by Thomson Financial on average were expecting revenue of $1.08 billion.
Labels: TOL, Toll Brothers Inc.
posted by Stock Administrator @ 3:53 PM
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