Toll Brothers Warns

Toll Brothers (TOL), the largest builder of luxury homes, cut its forecast for next year. The company said that it will build 9,500 to 10,200 homes, lower than its previous guidance of 10,200 to 10,600 homes. Plus, it sees “softening in demand” in some markets.
The entire homebuilding sector is taking a hit this morning. Toll Brothers is down about 13%, DR Horton (DHI) is down 11% and Pulte (PHM) is down 9%. Incidentally, Toll Brothers posted great earnings for the quarter, but no one seems to care.
Here’s a chart of the homebuilding sector. At one point, the sector was up nearly ten-fold for this decade, but since July the stocks have been retreating.
homebuilders.bmp

Posted by on November 8th, 2005 at 10:04 am


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