What's Going On With Toll Brothers Stock Today?

Toll Brothers Inc TOL shares are trading higher Wednesday after the company announced better-than-expected financial results. The stock initially traded lower on weak guidance before staging a reversal.

Toll Brothers reported fiscal third-quarter revenue of $2.5 billion, which beat average analyst estimates of $2.48 billion, according to Benzinga Pro. The company reported quarterly earnings of $2.35 per share, which beat average analyst estimates of $2.30 per share.

Toll Brothers said home sales generated $2.3 billion in revenue in the quarter. The company delivered 2,414 homes in the third quarter, down 7% year-over-year.

"While we achieved record third quarter revenue and earnings, and exceeded our gross margin forecast, deliveries were below our guidance due to unforeseen delays with municipal inspectors, continued labor shortages and supply chain disruptions, as well as a softer demand environment," said Douglas Yearley Jr, chairman and CEO of Toll Brothers.

Toll Brothers lowered its full-year home deliveries guidance as a result of the aforementioned challenges. The company now expects to deliver between 10,000 and 10,300 homes in full fiscal-year 2022 at an average price of approximately $920,000.

"As our third quarter progressed, we saw a significant decline in demand as the combined impact of sharply rising mortgage rates, higher home prices, stock market volatility and macroeconomic uncertainty caused many prospective buyers to step to the sidelines. However, in more recent weeks, we have seen signs of increased demand as sentiment is improving and buyers are returning to the market," the Toll Brothers CEO added.

See Also: Elon Musk's New Home Is In The 7th Priciest Housing Market In The Country

TOL Price Action: Toll Brothers has a 52-week high of $72.75 and a 52-week low of $40.19.

The stock was up 3.01% at $47.01 at time of publication.

Photo: Paul Brennan from Pixabay.

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