Toll Trims Estimates Again

Updated from 9:38 a.m. EDT

Homebuilder Toll Brothers(TOL Quote) reported a 48% plunge in third-quarter new orders and again cut its delivery forecast for the year, as the company blamed oversupply for the weak U.S. housing market.

Toll, the country's largest luxury-home builder, also warned that it is walking away from certain land option contracts, which will results in write-offs of deposits. The company said it will quantify this impact when it reports earnings later in August.

Toll shares recently were down $1.30, or 4.9%, to $25.28, as the entire homebuilding sector moved lower. Shares of Ryland (RYL Quote) were down $2.38, or 5.6%, to $40.50; Hovnanian (HOV Quote) declined $1.29, or 4.7%, to $26.25; and KB Home (KBH Quote) shed $1.61, or 3.6%, to $42.84. ...