Toll Brothers, the luxury homebuilder based in Fort Washington, Pa., is scheduled to release its fiscal fourth-quarter results after the market closes on Tuesday. Here are the key details you should know:
Net Income Expectations
According to estimates from five analysts polled by FactSet, Toll Brothers is expected to report a profit of $405 million for the quarter. This is a decrease from the $640.5 million profit reported in the same period last year.
Analysts polled by FactSet predict that Toll Brothers’ revenue will fall to $2.78 billion for the quarter. In the same three-month period last year, the company’s revenue stood at $3.71 billion.
Deliveries and Unit Numbers
The company is expected to report deliveries of 2,733 units for the quarter. This is based on a survey of nine analysts conducted by FactSet. In comparison, Toll Brothers delivered 3,765 units in the year-ago period and provided guidance of 2,650 to 2,750 units for the fiscal fourth quarter.
Toll Brothers’ stock experienced a decline of approximately 12% during the quarter. As of now, it is trading at $88.19.
What to Keep an Eye On
Impact of Rising Interest Rates: Oppenheimer analysts suggest that Toll Brothers may be less affected by rising interest rates compared to other homebuilders. This is because their customers are more likely to pay in cash and tend to be wealthier. Nevertheless, analysts will closely monitor any signs of these higher rates impacting Toll Brothers’ business.
Price Cuts: The National Association of Homebuilders’ survey indicates that homebuilders are generally reducing prices for their units. Toll Brothers’ quarterly update will provide insight into the extent of these price cuts and their effects on the company’s bottom line.