Geographic Results for Toll Brothers in Fiscal 2Q16
In Toll Brothers’ North segment, the ASP (average selling price) rose from $630,000 to $705,000 in fiscal 2Q16.
After Toll Brothers reported fiscal 2Q16 earnings on May 24, 2016, its stock rose by $2.41 to close the day at $29.51.
In fiscal 2Q16, Toll Brothers’ (TOL) gross margin, excluding interest and write-downs, rose to 25.7% compared to 25.3% a year ago.
Toll Brothers (TOL) reported that its ASP (average selling price) for fiscal 2Q16 was $855,500, a drop of 2% on a quarter-over-quarter basis.
Toll Brothers (TOL) reported fiscal 2Q16 revenues of $1.1 billion. Deliveries in the second quarter rose 31% in dollar terms and 9% in units.
In April 2016, existing home sales reached an annualized 5.47 million rising by 6% YoY over March, when existing home sales were 5.36 million.
The NAHB Wells Fargo Housing Market Index measures homebuilder sentiment has been increasing steadily since 2009. Recently, it’s started to accelerate.
Overall, permits for single-family residences rose slightly from 725,000 to 736,000 in April.
In April 2016, housing starts rose from 1.1 million to ~1.2 million, which was above Wall Street analysts’ estimate of 1.1 million.
On Friday, May 27, we’ll get the second revision to 1Q16 GDP. Wall Street is forecasting the number to come in at 0.9%.
Mortgage purchase applications rose 0.4% in the week ending May 6, 2016. We’re in the seasonally strong period for house purchases.
The federal government has taken steps to reduce foreclosures, including encouraging servicers to pursue other means of dealing with delinquent borrowers.
Foreclosure completions rose by 2,000 units to 36,000 in March 2016, according to CoreLogic. Completions fell 15% year-over-year.
Planned job cuts rose 6% in April year-over-year. They rose 35% from March. That being said, the number for December 2015 was the lowest in years.
Given the rough patch in the global economy, the Fed might have an excuse not to hike rates in June. If wage inflation is returning, the Fed’s hands will be tied.
In April 2016, non-farm payrolls rose by 160,000. Non-farm payrolls missed Wall Street analysts’ estimate of 200,000 by a wide margin.
In March 2016, there were 5.8 million job openings—up 9% YoY. The number of job openings came in well above Wall Street analysts’ estimates.
Historically, the use of public construction dollars has been the big lever that the government uses to stimulate the economy. This dates back to the New Deal.
In March, housing starts fell to an annualized rate of 1.1 million from 1.2 million the month before. Building permits fell from 1.2 million to 1.1 million as well.
In March, the share of existing home sales attributable to the first-time homebuyer was 30%—flat with February. Historically, this was closer to 40%.