Housing
Toll Brothers’ Results Falter; Will Enter Rental Market
Published:
Last Updated:
The biggest news from Toll Brothers, however, is the company’s announcement that it has a developed a “pipeline of sites” on which Toll Brothers will build rental apartments. The company expects to begin generating income from the new rental units in its 2015 fiscal year.
The company’s CEO said:
Demand has increased. With our first quarter contracts up 49%, and contracts for the first three weeks of our second quarter up 40% versus comparable periods in FY 2012, it appears that momentum is building. We are continuing to gain market share and see little competition from local private builders. As the Spring selling season kicks off, we are also enjoying increasing pricing power due to the release of pent-up demand colliding with limited supply in the affluent markets where we operate.
That would certainly be a change from the first quarter. For the quarter, the company’s average price of homes delivered dropped and the average price of signed contracts also dropped. As a higher-end home builder, Toll Brothers is not getting a lot of help from the increase in first-time buyers, and the company’s results emphasize that.
Shares are down 3.4% in premarket trading this morning to $35.65, in a 52-week range of $21.78 to $38.36 Thomson Reuters had a consensus analyst price target of around $36.90 before today’s results were announced.
Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.