Toll Brothers Inc. (NYSE: TOL) has confirmed that it will release earnings on Tuesday, December 7, 2021, after market close.
What to look for
Earnings: Stockearning’s Estimated EPS for the quarter ended September 30, 2021, is expected to top the previous quarter's earnings of $1.87 per share. In the last quarter, the company topped the estimated EPS of $1.52 per share, and a year ago, the company had EPS of $1.87. Historical EPS Performance shows that the company has topped estimates eleven times (91%) in the last 12 quarters and missed once (8%).
Revenue: In the second quarter, the company posted revenue of $2.26 billion, topping estimates by 1.74%. A year ago, the company had a revenue of $1.65 billion. Over the past four quarters, the company has topped revenue in all quarters.
Stock movement: Since the last earnings release, the Toll Brothers shares have gained 8.1%. Toll Brother shares have been DOWN 25 times out of the past 47 quarters after the earnings release. So, the historical price reaction suggests a 53% probability of the share price going DOWN once Toll Brothers releases its earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 5%.
What analysts are saying
BofA analyst Rafe Jadrosich reinstated coverage on the stock with a "Buy" rating and a price target of $75. The analysts indicated that the surge in household wealth and remote working opportunities went well for Toll Brothers, with price momentum and luxury hoe demand expected to be robust through 2022. Jadrosich added that the company’s 8.4 time Price to Earnings multiple resonates with historical late-cycle multiples.
Also, JPMorgan analyst Michael Rehaut lowered his price target on the stock from $72 to $61.5 and maintained a "Sell" rating in the stock. Michael said that he expects a "solid industry backdrop" in 2022 through 2023 driving more earnings growth in the next two years. As a result, the analyst is maintaining a constructive view of the homebuilding industry.
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