PREVIEW: Toll Bros shares dip; fiscal Q1 rev, EPS seen falling
18/02/2025 20:22
** Shares in luxury homebuilder Toll Brothers Inc TOL.N down
~1.6% on Tuesday ahead of fiscal first-quarter report due out
after market close
** TOL, which will hold a conference call to discuss its
results before market open on Wednesday, is expected to report
adj EPS of $2.04 vs $2.25 in year-ago quarter on rev of $1.906
bln down from $1.932 bln year-ago, according to data from LSEG
** In last 8 quarters TOL met or beat the Street's rev est
every time while EPS beat 7 times
** In mid-Jan Barclays cut price targets for homebuilders
including TOL as it noted that momentum around rate cuts driving
new home demand had "all but evaporated" with inventory levels
increasing and an expectation margin pressure would rise
** TOL shares last at $121.65 vs median PT of $162.00, down
from $164.50 a month ago, as per LSEG, which shows 19 analyst
ratings: 6 'strong buy,' 5 'buy,' 7 'hold' and 1 'sell' rating
** YTD down ~3% after rising 22.5% in 2024 vs PHLX housing
index .HGX , which is roughly unchanged so far this year after
rising 4.5% in 2024
** HGX down 0.8% on the day after morning release showed the
National Association of Home Builders/Wells Fargo Housing Market
Index, measuring U.S. homebuilder sentiment, tumbled to 5-month
low in February on worries import tariffs, higher mortgage rates
would further drive up housing costs
(Reporting By Sinéad Carew)
((sinead.carew@thomsonreuters.com; +13322191897;))