The largest luxury homebuilder in the United States, and a major component in homebuilder exchange traded funds (ETFs), predicted a 41% drop in fourth-quarter revenue.
Toll Brothers Inc. (TOL) reported preliminary results for the quarter ended Oct. 31 showed total consolidated homebuilding revenue of about $691 million, down from $1.17 billion a year earlier, report Helen Chernikoff and Bhaswati Kukhopadhyay for Reuters.
Homebuyer confidence, traffic and demand are down to record lows, says Chief Executive Robert Toll.
Other homebuilders are feeling the pain, too. Meritage Homes Corp. (MTH) fell on Monday after an analyst downgrade to "neutral" from "buy," reports the Associated Press. The analyst said that while there were strengths in Meritage, including liquidity and lower land exposure, the housing market troubles will deepen.
Tiernan Ray for Barrons reports that bargains may be found in the broader housing market rather than the beaten up foreclosure market. The story states that the second-largest homebuilder in the nation, Pulte Homes (PHM), might be in a position to take on the market upswing, although it is far off.
Obviously, no one knows the true direction of the housing market, so stick with what the trends are saying. At the moment, homebuilder ETFs are below their trend lines.
updated Nov 11, 2008
Sign up to get our newsletter with money saving tips, deals and coupons - no spam.
discounts & deals from all banks in one app?
At GET.com we compare credit cards and rate them objectively based on the credit card's features, interest rates and fees.
Cards are rated by our team based primarily on the basis of value for money to the cardholder. The GET.com team rates each card based on its annual fee, rewards, benefits, bonus, introductory APR, ongoing APR, flexibility (in how its benefits can be used and how rewards are earned and redeemed), and other card features.