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Earnings Preview: What To Expect From Toll Brothers On Tuesday

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Toll Brothers Inc. is scheduled to release earnings before Tuesday's open. Toll Brothers hit a record high of $58.67/share in 2005 and is currently trading near $38/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:

Toll Brothers is expected to report earnings of $0.68/share on $1.48 billion in revenue. Meanwhile, the so-called Whisper number is $0.72. The Whisper number is the Street's unofficial view on earnings.

Company Profile:

Here is a brief company profile courtesy of Thomson Reuters Eikon:

Toll Brothers, Inc., incorporated on May 28, 1986, is engaged in designing, building, marketing, selling and arranging financing for detached and attached homes in luxury residential communities. The Company operates through two segments: Traditional Home Building and Toll Brothers City Living (City Living). Within the Traditional Home Building segment, it operates in five geographic segments in the United States: the North, consisting of Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York; the Mid-Atlantic, consisting of Delaware, Maryland, Pennsylvania and Virginia; the South, consisting of Florida, North Carolina and Texas; the West, consisting of Arizona, Colorado, Nevada and Washington, and California. City Living is the Company's urban development division. Its products include Traditional Home Building Product and City Living Product. Its Traditional Home Building Product includes detached homes, move-up, executive, estate, and active-adult and age-qualified lines of home. Attached homes include flats townhouses/carriage homes, city living product, and active-adult and age-qualified line of homes. The Company operates its own land development, architectural, engineering, mortgage, title, landscaping, security monitoring, lumber distribution, house component assembly and manufacturing operations. As of October 31, 2016, the Company operated in 19 states.

Competition:

The Company competes with other home-builders such as: Meritage Homes, KB Home, Ryland Group, PulteGroup, and Lennar just to name a few.

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.

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