Toll Brothers Still Killing It
Luxury home builder Toll Brothers (TOL) reported strong 1Q results minutes ago, though it continued to warn of a year that won't be as torrid as the blowout 05 it enjoyed.Net income rose 49 percent from $110.1 million to $163.9 million, revenues jumped 35 percent from $990 million to $1.34 billion.
Toll's supply of 87,000 buildable lots is off the charts -- this stock is poised to move higher, especially with all the shorts currently getting squeezed.
Toll's outlook for '06 was optimistic: It believes it will deliver approximately 9500 homes; this should either be the best or second-best fiscal year in the company's history.
That said, Toll could be setting itself up for a whammy if it overpromises and underdelivers: what the Fed giveth, the Fed taketh.
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