Earnings Preview: What To Expect From Toll Brothers Today

Toll Brothers
TOL
is scheduled to report earnings after Tuesday’s close. The stock just hit a record high of $88.72/share and is currently trading near $87/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview

The company is expected to report a gain of $3.66/share on $2.78 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $3.84/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals

The company’s earnings have grown very nicely over the last several years. In 2016 the company earned $2.18/share and in 2022 that vaulted to $10.90! The company has benefited from the shortage of homes and the strong labor market.

A Closer Look At The Technicals

Technically, the stock is acting very well. The stock just hit a fresh record high which is bullish. In the short-term the stock is a little extended and it will be interesting to see how it reacts to earnings. The bulls want to see a big gap up and the bears want to see it gap down.

Pay Attention To How The Stock Reacts To The News

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Disclaimer: The stock has been featured in my FindLeadingStocks.com stock market membership website.