What To Expect From Toll Brothers Today

SOUTH BARRINGTON, IL – DECEMBER 04: A home site is listed as sold in a Toll Brothers housing … [+] development on December 4, 2012 in South Barrington, Illinois. Toll Brothers beat fiscal fourth-quarter earnings expectations which CEO Douglas Yearley Jr. attributed to an increase in home prices, low interest rates and a pent up demand. Nationwide home prices increased 6.3% in October from a year earlier, the biggest year-over-year gain since 2006. (Photo by Scott Olson/Getty Images)

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Toll Brothers Inc.

is scheduled to report earnings after Tuesday’s close. The stock just hit a record high near $72 and is currently trading near that level. 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:

Gallery: The Cities Building The Most Housing

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Earnings Preview:

The company is expected to report earnings of $2.48/share on $2.88 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.57/share. The Whisper number is the Street\’s unofficial view on earnings.

Charts and data courtesy of MarketSmith Inc.

Charts and data courtesy of MarketSmith Inc.

A Closer Look At The Fundamentals:

The company continues to thrive as the housing boom continues on Main Street. Home prices have soared across most of the country over the past few years and home builders have benefited from this very strong demand. That is shown by the very healthy double and triple digit sales and earnings growth the company has enjoyed in the past few quarters!

A Closer Look At The Technicals:

Technically, the stock is acting great and just broke out of a big base and hit a fresh record high. The stock is acting very well and a big gap up after earnings would likely attract a lot more buyers. Other housing stocks have gapped up after reporting earnings recently which bodes well for Toll Brothers.

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.