What to Look For in Toll Brothers' (TOL) Quarterly Results
NEW YORK (TheStreet) -- Toll Brothers (TOL) - Get Report stock is slumping 1.61% to $27.13 on Monday afternoon even though the company is expected to report year-over-year growth in profit and revenue.
When the Horsham, PA-based luxury home builder reports its fiscal 2016 second quarter results on Tuesday before the market open, Wall Street is looking for earnings of 46 cents a share on revenue of $1.04 billion.
A year ago, the company earned 37 cents a share on revenue of $852.6 million.
Order trends remained robust through 2016 and the first quarter of fiscal 2016. Zacks analysts believe this trend will continue throughout the rest of the year.
However, some headwinds include a strained labor market and the growing complexity of homes.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: TOL
