BUZZ-PREVIEW: Toll Bros shares dip; fiscal Q1 rev, EPS seen falling

Shares in luxury homebuilder Toll Brothers Inc TOL.N down ~1.6% on Tuesday ahead of fiscal first-quarter report due out after market close

TOL, which will hold a conference call to discuss its results before market open on Wednesday, is expected to report adj EPS of $2.04 vs $2.25 in year-ago quarter on rev of $1.906 bln down from $1.932 bln year-ago, according to data from LSEG

In last 8 quarters TOL met or beat the Street's rev est every time while EPS beat 7 times

In mid-Jan Barclays cut price targets for homebuilders including TOL as it noted that momentum around rate cuts driving new home demand had "all but evaporated" with inventory levels increasing and an expectation margin pressure would rise

TOL shares last at $121.65 vs median PT of $162.00, down from $164.50 a month ago, as per LSEG, which shows 19 analyst ratings: 6 'strong buy,' 5 'buy,' 7 'hold' and 1 'sell' rating

YTD down ~3% after rising 22.5% in 2024 vs PHLX housing index .HGX, which is roughly unchanged so far this year after rising 4.5% in 2024

HGX down 0.8% on the day after morning release showed the National Association of Home Builders/Wells Fargo Housing Market Index, measuring U.S. homebuilder sentiment, tumbled to 5-month low in February on worries import tariffs, higher mortgage rates would further drive up housing costs