Latest news with #DouglasYearley
Yahoo
a day ago
- Business
- Yahoo
Toll Brothers (NYSE:TOL): Strongest Q1 Results from the Home Builders Group
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Toll Brothers (NYSE:TOL) and the rest of the home builders stocks fared in Q1. Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials. The 12 home builders stocks we track reported a slower Q1. As a group, revenues beat analysts' consensus estimates by 1.4%. Thankfully, share prices of the companies have been resilient as they are up 7.1% on average since the latest earnings results. Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE:TOL) is a luxury homebuilder across the United States. Toll Brothers reported revenues of $2.74 billion, down 3.5% year on year. This print exceeded analysts' expectations by 9.9%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' EPS estimates. Douglas C. Yearley, Jr., chairman and chief executive officer, stated: 'We are pleased with our second quarter results, as we delivered earnings that significantly exceeded expectations. Despite a softer demand environment, we generated record second quarter home sales revenues of $2.71 billion, well above our guidance of $2.47 billion, and beat both our adjusted gross margin and SG&A guidance. We believe these results highlight the strength of our broadly diversified luxury product offerings, price points and geographies, our balanced portfolio of build-to-order and spec homes, and our strategy of prioritizing sales price and margin over pace in the current environment. Based on our first half results and the strength of our backlog, we are reaffirming our full year guidance. Toll Brothers pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 14.8% since reporting and currently trades at $119.90. Is now the time to buy Toll Brothers? Access our full analysis of the earnings results here, it's free. Named 'America's Most Trusted Home Builder' in 2019, Taylor Morrison Home (NYSE:TMHC) builds single family homes and communities across the United States. Taylor Morrison Home reported revenues of $1.90 billion, up 11.5% year on year, outperforming analysts' expectations by 5.7%. The business had a strong quarter with an impressive beat of analysts' EBITDA estimates. Taylor Morrison Home delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $64.25. Is now the time to buy Taylor Morrison Home? Access our full analysis of the earnings results here, it's free. Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States. LGI Homes reported revenues of $351.4 million, down 10.1% year on year, falling short of analysts' expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. LGI Homes delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.4% since the results and currently trades at $56. Read our full analysis of LGI Homes's results here. The first homebuilder to be listed on the NYSE, KB Home (NYSE:KB) is a homebuilding company targeting the first-time home buyer and move-up buyer markets. KB Home reported revenues of $1.53 billion, down 10.5% year on year. This result topped analysts' expectations by 1.6%. Aside from that, it was a slower quarter as it logged a significant miss of analysts' EBITDA and backlog estimates. The stock is up 4.7% since reporting and currently trades at $55.88. Read our full, actionable report on KB Home here, it's free. Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE:MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US. Meritage Homes reported revenues of $1.36 billion, down 7.5% year on year. This number beat analysts' expectations by 2.4%. Aside from that, it was a mixed quarter as it also logged full-year revenue guidance beating analysts' expectations but a significant miss of analysts' backlog estimates. Meritage Homes delivered the highest full-year guidance raise among its peers. The stock is up 4.1% since reporting and currently trades at $70.97. Read our full, actionable report on Meritage Homes here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
CEO of an $11 billion builder empire warns that these housing markets face a short-term oversupply
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. He was buried in a mushroom casket. Soon he'll be part of the soil CEO of an $11 billion builder empire warns that these housing markets face a short-term oversupply Lifting the veil on the critical—and oft-times overlooked—factors driving AI growth This year's spring selling season didn't meet expectations, Toll Brothers CEO Douglas Yearley told a group of institutional investors gathered at Bank of America's 2025 Housing Symposium earlier this month. 'The spring selling season, which is really a winter selling season, is when most new homes are sold in this country,' Yearley said. 'This was not a good spring . . . it still was, overall, a soft spring season.' Yearley said February marked the spring season low point, with some improvement in March and April—but not enough to call it a rebound. Regionally, Yearley painted a picture of a highly bifurcated market. The best-performing areas for Toll Brothers include Boston and Northern Virginia, where land is scarce, resale inventory is tight, and competition from large public builders is limited. 'Through the COVID years, you know, the Northeast and Atlantic, all across and down through Northern Virginia, did not fare well, as everybody could go remote and leave—they were chasing the sunshine and chasing a lower cost of living. And so home price appreciation through COVID wasn't as much in Boston and Northern Virginia because demand wasn't as strong. Now that has completely flipped, and our strongest corridor is Boston,' Yearley said. Yearley added: 'There's less competition [in the Northeast]. The big public builders aren't here. There's very little land. So when you get the land, it's gold, and the resale markets are much tighter. I live on the Main Line of Philadelphia, in the suburbs of Philly. There's no inventory [here]. That's not true in Texas and Florida and other places where you have a lot of big public builders and a lot of land. So there's much more supply [in Texas and Florida]. But in the Boston and Northern Virginia corridor, it's very supply-constrained, and we [Toll Brothers] are doing really well [in the Northeast].' On the flip side, Toll Brothers—a publicly traded luxury homebuilder with an $11 billion market capitalization—is seeing the most softness in pandemic-era boomtowns across the Sun Belt, where unsold completed spec inventory has surged. Spec homes—short for speculative homes—are built without a buyer lined up, with the builder betting the home will sell once finished. 'On the softer side, you know, Florida inventories are up . . . parts of Texas inventories are up. Phoenix is still adjusting a bit with high inventories. A lot of that inventory for existing homes is builder spec, because all those markets have a lot of big builders there who are committed to a spec strategy,' Yearley said. Yearley doesn't think this spec overhang in boomtown areas in Arizona, Florida, and Texas will last forever. He's already starting to see some homebuilders pull back. 'As many as a third of the overhang on the resale market right now is actually new unsold spec. That'll clean up [over time] because the builders are starting fewer spec homes in the softer market, and I think that will naturally work its way out,' Yearley said. Despite near-term softness, Yearley remains bullish on the long-term fundamentals driving housing demand. 'We have 4 to 6 million too few homes in this country. We haven't built enough homes in the last 15 years to come close to satisfying demand,' he said. 'The tailwinds for the industry are great, but short-term pressure is real.' This post originally appeared at to get the Fast Company newsletter:
Fast Company
5 days ago
- Business
- Fast Company
CEO of an $11 billion builder empire warns that these housing markets face a short-term oversupply
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. This year's spring selling season didn't meet expectations, Toll Brothers CEO Douglas Yearley told a group of institutional investors gathered at Bank of America's 2025 Housing Symposium earlier this month. 'The spring selling season, which is really a winter selling season, is when most new homes are sold in this country,' Yearley said. 'This was not a good spring . . . it still was, overall, a soft spring season.' Yearley said February marked the spring season low point, with some improvement in March and April—but not enough to call it a rebound. Regionally, Yearley painted a picture of a highly bifurcated market. The best-performing areas for Toll Brothers include Boston and Northern Virginia, where land is scarce, resale inventory is tight, and competition from large public builders is limited. 'Through the COVID years, you know, the Northeast and Atlantic, all across and down through Northern Virginia, did not fare well, as everybody could go remote and leave—they were chasing the sunshine and chasing a lower cost of living. And so home price appreciation through COVID wasn't as much in Boston and Northern Virginia because demand wasn't as strong. Now that has completely flipped, and our strongest corridor is Boston,' Yearley said. Yearley added: 'There's less competition [in the Northeast]. The big public builders aren't here. There's very little land. So when you get the land, it's gold, and the resale markets are much tighter. I live on the Main Line of Philadelphia, in the suburbs of Philly. There's no inventory [here]. That's not true in Texas and Florida and other places where you have a lot of big public builders and a lot of land. So there's much more supply [in Texas and Florida]. But in the Boston and Northern Virginia corridor, it's very supply-constrained, and we [Toll Brothers] are doing really well [in the Northeast].' On the flip side, Toll Brothers—a publicly traded luxury homebuilder with an $11 billion market capitalization—is seeing the most softness in pandemic-era boomtowns across the Sun Belt, where unsold completed spec inventory has surged. Spec homes—short for speculative homes—are built without a buyer lined up, with the builder betting the home will sell once finished. 'On the softer side, you know, Florida inventories are up . . . parts of Texas inventories are up. Phoenix is still adjusting a bit with high inventories. A lot of that inventory for existing homes is builder spec, because all those markets have a lot of big builders there who are committed to a spec strategy,' Yearley said. Yearley doesn't think this spec overhang in boomtown areas in Arizona, Florida, and Texas will last forever. He's already starting to see some homebuilders pull back. 'As many as a third of the overhang on the resale market right now is actually new unsold spec. That'll clean up [over time] because the builders are starting fewer spec homes in the softer market, and I think that will naturally work its way out,' Yearley said. Despite near-term softness, Yearley remains bullish on the long-term fundamentals driving housing demand. 'We have 4 to 6 million too few homes in this country. We haven't built enough homes in the last 15 years to come close to satisfying demand,' he said. 'The tailwinds for the industry are great, but short-term pressure is real.'
Yahoo
24-05-2025
- Business
- Yahoo
While Most Americans Can't Afford Homes, Toll Brothers CEO Says Some Buyers Are Dropping $200,000 Just On Upgrades
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. As housing affordability reaches a critical point, homebuilding company Toll Brothers Inc. (NYSE:TOL) CEO Douglas Yearley gave insights about the customer base during the second-quarter earnings call on Happened: Yearly said, 'Over 70% of our business serves the move-up and empty-nester segments.' He revealed that 'these buyers are wealthier, have greater financial flexibility, and most have equity in their existing homes,' highlighting the affluence of Toll's average buyer. According to the company, the average price of homes in its backlog has climbed to $1.13 million, a record high, and on top of the base pricing, buyers spent an additional $200,000 on upgrades. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'The average spend on design studio selections, structural options, and lot premiums was approximately $200,000 per home in Q2,' Yearley said, 'these upgrades benefit our margins as they tend to be highly accretive.' When asked about mortgage rates and their impact on the business, Yearley said, 'a little tick in mortgage rate' doesn't affect the company's clientele all that much. This is because 24% of its buyers pay in cash, and even those who rely on financing have an average loan-to-value ratio of just 70%. Yearley also added that 'a good part of the 30% of first-time buyers we sell to are getting some help from mom and dad with generational wealth transfer,' underscoring the financial strength of its core customer base. Despite the recent softness in housing demand, Toll reaffirmed full-year guidance and raised its stock buyback target to $600 It Matters: This comes at a time when the U.S. is experiencing a housing affordability crisis, with buyers having to spend 42.4% of their monthly income to make payments on their homes, according to John Burns Research & Consulting, underscoring the sharp divide between the entry-level and luxury housing Lambert, the co-founder of the ResidentialClub newsletter, shared the Burns Affordability Index chart on X, highlighting that housing affordability is at its 'most strained level in nearly four decades,' and is only exceeded by the early 1980s, when mortgage rates touched 18%. Recently, BMO Bank said in a report that 'the financial hurdles to owning a home have rarely been higher, especially for young households that don't yet have their foot in the door,' highlighting the fact that the median first-time homebuyer age reached 38 last year. During its second quarter results on Tuesday, Toll Brothers reported $2.71 billion in revenue, beating consensus estimates of $2.48 billion. It posted a profit of $3.50 per share, significantly ahead of estimates at $2.92 per share. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest at $0.60/share before it's too late. Invest Where It Hurts — And Help Millions Heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold. Photo Courtesy: Andy Dean Photography on Send To MSN: Send to MSN This article While Most Americans Can't Afford Homes, Toll Brothers CEO Says Some Buyers Are Dropping $200,000 Just On Upgrades originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Top Stock Movers Now: UnitedHealth, Wolfspeed, Alphabet, and More
U.S. equities were mixed at midday with the market following the progress of the Republican tax cut and spending bill that could be heading to a vote soon. A report accusing UnitedHealth Group of paying nursing homes to limit patient transfers to hospitals sent shares of the health insurer tumbling. Toll Brothers gave an optimistic outlook for housing demand, and shares gained.U.S. equities were mixed at midday as the market watched developments in Washington on the Republicans' tax cut and spending bill. The Dow Jones Industrial Average and S&P 500 declined, while the Nasdaq was up. Fair Isaac (FICO) shares slumped for a second straight session after a federal housing official questioned the pricing of the credit scoring firm and gave support to lower-cost options. Shares of UnitedHealth Group (UNH) dropped on a report that the health insurer secretly paid nursing homes to prevent patient transfers to hospitals. Another report, this one saying Wolfspeed (WOLF) was looking to file for bankruptcy within weeks, sent shares of the troubled silicone carbide chip manufacturer crashing. Shares of Google parent Alphabet (GOOGL) bounced back from yesterday's sell-off following the tech giant's introduction of its new artificial intelligence (AI)-powered search product. Shares of Keysight Technologies (KEYS) jumped after the electronic testing products maker posted better-than-expected results, boosted by increases in revenue from commercial communications, aerospace, defense, and government customers. Toll Brothers (TOL) shares advanced when the homebuilder reiterated its guidance despite a soft housing market, and CEO Douglas Yearley said the company is optimistic about long-term demand. Oil futures fell. Gold prices rose. The yield on the 10-year Treasury note gained. The U.S. dollar continued to slide versus the euro, pound, and yen. Most major cryptocurrencies traded higher, with bitcoin setting a record of more than $109,400. Read the original article on Investopedia
