It’s the economy, stupid!
Toll Brothers’ should seriously reconsider their future earnings release dates to not coincide with US New Home Sales data, which unexpectedly fell sharply — 11.4% vs. Wall St. expectation of about 1%.
What else explains the approx. 1% drop in its stock prices after reporting “better than expected” big earnings beat thanks to the “best spring selling season” in 10 years!
Toll Brothers had a 40% rise in quarterly profits and is focused on delivering millennial-friendly affordable homes called T-Select whose typical ticket sizes are lower than their luxury homes.
Though new homes data was a shocker, Wall St. is not perturbed for now, as it only accounts for about 10% of the housing market. The bulk of the housing market is sales of existing homes and that data would be reported later today by The National Association of Realtors!
This was originally published as a newsletter on May 24, 2017. To subscribe to the newsletter, click here