Toll Brothers Update September 14, 2015

Toll Brothers is updated and remains rated Buy now at $37.23. Its latest quarter reported revenues and earnings were weak with a small decline. However that was related to a decrease in its signed home sales contracts from one year prior. This company has a somewhat unique one year average lag between making a sale (contracting to deliver a house) and ultimately completing and delivering the completed house and booking the sale.┬áIt’s signed contracts in the past were up an average of over 20% in the four previous quarters. This means that a 20% increase in earnings or more in the next year would appear to be basically baked in.