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Toll Brothers shares slumped Wednesday after the homebuilder posted weaker-than-expected results and warned about demand in some markets.
CEO Douglas Yearley, Jr. said that while demand for higher-priced homes has been solid, “affordability constraints and growing inventories in certain markets are pressuring sales—especially at the lower end.”
Toll Brothers said it anticipates delivering 2,500 to 2,700 homes in the quarter, short of analysts’ forecasts.
Toll Brothers (TOL) shares slumped Wednesday after the homebuilder posted weaker-than-expected results and warned about demand in some markets.
The company reported fiscal first-quarter earnings per share (EPS) of $1.75, with revenue down 1.6% year-over-year to $1.86 billion. Both figures were short of estimates compiled by Visible Alpha. The results came as home sales slipped 4.7% to $1.84 billion, and deliveries climbed 3.3% to 1,991 units. Those missed expectations, as well.
CEO Douglas Yearley, Jr. said the soft profit numbers were mainly because of “impairments and a delay in the sale of a stabilized apartment property in one of our joint ventures.”
However, he added that while demand for higher-priced homes has been solid, “affordability constraints and growing inventories in certain markets are pressuring sales—especially at the lower end.”
Toll Brothers said it anticipates current-quarter deliveries of 2,500 to 2,700 units, while analysts surveyed by Visible Alpha were looking for 2,766.
Shares of Toll Brothers fell more than 5% Wednesday following the news. The stock has gained close to 8% over the past year.
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