Earnings are expected to come in at 23 cents per shares, up from 9 cents a year ago. Revenue is projected to be $566.5 million for the quarter, 32.4% above the year-earlier total of $427.8 million. Revenue grew in the last two quarters. In the most recent quarter, revenue rose 40.6% year-over-year to $554.3 million. The quarter before that, it rose 16.9%.
=The underlying theme for all companies this quarter has been beats on the bottom line but misses on revenue as companies show they are cost cutting due to the uncertainty with the fiscal cliff. When this happens traders have been very unforgiving hitting equities hard.
2012 has treated Toll Brothers and its other housing counterparts very nicely with the stock up about 56% for the year. Although it has recently been in somewhat of a downtrend, it has shown support at its 200 day simple moving average.
The options market has indicated that TOL should move anywhere from $2-$2.50 after the announcement.