Back in June, I was cautiously optimistic on the shares of Toll Brothers (NYSE:TOL), provided that "the economy does not slide back into recession". Nowadays, that concern is looking more ominous, and uncertainties seem to be weighing on consumer sentiment. Toll Brothers is still the best property on the homebuilding block, but these days that may be like asking investors to choose between a haunted house designed by Disney and one designed by Lovecraft. Sure, there's a difference but they're both still haunted houses.
Not a Lot of Good News in the Third Quarter
Toll Brothers reported revenue of $394 million for the third quarter, down about 13% in dollar terms from the year-ago level. Undercut by a 14% drop in units, Toll Brothers actually missed the average analyst guess, but investors should note that there was a pretty wide spread for revenue estimates, which certainly befits the uncertain state of housing.
Read the full piece at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Toll-Teetering-TOL-PHM-DHI-HOV-BZH-KBH0825.aspx
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