Toll Brothers Inc. swung to a loss in the first quarter, missing analysts’ forecast. Toll Brothers designs, builds, markets and arranges financing for single-family detached and attached homes in luxury residential communities.
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Toll Brothers Earnings Cheat Sheet for the First Quarter
Results: Reported a loss of $2.8 million (2 cents per diluted share) in the quarter. Toll Brothers Inc. had a net income of $3.4 million or 2 cents per share in the year-earlier quarter.
Revenue: Fell 3.6% to $322 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Toll Brothers Inc. fell short of the mean analyst estimate of 3 cents per share. It fell short of the average revenue estimate of $360.8 million.
Quoting Management: Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer, stated: “The past few months have been very exciting for Toll Brothers. Our total and per-community contracts were the highest for a first quarter in five years. At first-quarter end, the value of our backlog was up 35% and our community count was up 14% compared to one year ago. We entered the Seattle market through the acquisition of CamWest. We teamed with Equity Residential to acquire a great site at 28th Street and Park Avenue South in Manhattan where Toll Brothers will own and sell condominiums on the top eighteen floors of what will be an iconic forty-story building. And our Gibraltar subsidiary acquired its fifth portfolio of distressed assets with a combined outstanding loan balance of approximately $51.4 million: This was its first portfolio of primarily commercial assets.”
Key Stats:
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 9 cents versus a mean estimate of net income of 5 cents per share.
TOL broke a two-quarter streak of profits when it reported a loss in the latest quarter. The company reported a profit of $15 million in the fourth quarter of the last fiscal year and a profit of $42.1 million in the third quarter of the last fiscal year.
Over the last five quarters, revenue has fallen an average of 1.1% year-over-year. The biggest drop came in the third quarter of the last fiscal year, when revenue fell 13.2% from the year-earlier quarter.
Looking Forward: The average estimate for the second quarter remains unchanged at 4 cents a share. In the past month, the average estimate for the fiscal year has fallen from 36 cents per share to 35 cents abs.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
