Reuters Toll posts lower profit Tuesday December 5, 8:29 am ET NEW YORK (Reuters) - Toll Brothers Inc. (NYSE:TOL - News), which builds luxury homes, reported lower quarterly earnings on Tuesday amid a slowdown in the U.S. housing market, sending its shares down more than 3 percent before the market opened. The company also noted uncertain market conditions in its forecast. In its fiscal fourth quarter that ended on October 31, profit fell to $173.8 million, or $1.07 per share, from $310.3 million, or $1.84 per share, a year earlier. Analysts had expected $1.06 per share. Toll said it expected earnings of $1.58 to $2.08 a share for fiscal 2007. Its shares fell 3.2 percent to $30.90 in electronic trading before the market opened. The company's outlook includes the expected impact of a change of accounting method, which the company anticipates will shift earnings of between 22 cents and 29 cents a share from 2007 to subsequent years. The forecast also includes an estimate of $60 million of pretax land-related write-downs -- above the $16 million Toll budgeted annually in recent years -- due to uncertain market conditions. But Chief Executive Robert Toll said in a statement: "Fifteen months into the current slowdown, we may be seeing a floor in some markets where deposits and traffic ... seem to be dancing on the bottom or slightly above."
But Chief Executive Robert Toll said in a statement: "Fifteen months into the current slowdown, we may be seeing a floor in some markets where deposits and traffic ... seem to be dancing on the bottom or slightly above." nearly a decade of housing gains followed by a 1 year slump is going to be continued by more gains because they think the floor is in. ITS NOT IN.....Foreclosures are still on the rise and $1.5 Trillion worth of ARMS have not even begun to reset. 25% drop in homebuilders still yet to come.
Toll borthers? Bfft this is a TECH rally anyway. Toll is a bloated large cap-means nothing for this market. Buy GOOG 510 Calls now Goog 510 calls make you huge money
The bigger joke is how you have been wrong for the past 2 weeks looking for any lame excuse justify being bearish
Ill admit im bearish on this market. Im not calling tops or bottoms im simply posting news articles on the economy, most of them bearish. I dont think though that you have ever traded through the tough times in this market. You think there is no such thing as a down market One day you will buy the dip only to witness that it was a mistake because that dip is what turned into a modest correction.
If you read my summer journal I held though the summer correction so yea I've seen tough times. Also I have doing this for over 3 years. Sure dips can result in full blown corrections but the trend for the past 6 months has been very strong and the market has rebounded off the support levels after every short term selloff. last monday people thought it was over, nope it was just some profittaking. No big deal.