Dividend.com: Cold Touch of Steel Dynamics

Toll Brothers Reports Worse-Than-Expected Second-Quarter Loss

Homebuilder Toll Brothers(TOL) said Wednesday that its second-quarter net loss was much larger than Wall Street analysts had expected and declined to provide future earnings guidance due to uncertain market conditions.

The Horsha, Penn., company reported a second-quarter net loss of $83.2 million or 52 cents a share, compared with a loss of $93.7 million or 59 cents a share in the same period last year. Excluding $119.6 million in pre-tax write-downs, however, the company saw an adjusted loss of 3 cents per share. Revenue for the latest quarter fell a considerable 51% to $398.3 million.

On average, Wall Street analysts expected a loss of 50 cents per share on slightly higher revenue of $399.4 million.

Toll Brothers said its order backlog plummeted 55% $944.3 million, while net signed contracts plunged 40% $298.3 million. Shares fell $1.22 or 6.2% in Wednesday morning trading following the report.

Shares of Toll Brothers are off the 52-week high of $27 a share. The stock has technical support in the $14 to $15 price area. If the shares can rebound after today's miss, we see the $23 mark as a key level of overhead resistance. We do not currently rate this non-dividend paying stock, but do follow the homebuilder closely.

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