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Why Toll Brothers Stock Is Falling After Earnings

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  Toll Brothers stock is lower Wednesday after the homebuilder missed expectations for its first quarter. Here's what you need to know.

Toll Brothers, Inc. experienced a decline in its stock price following the release of its fiscal second-quarter earnings report. Despite reporting earnings per share of $1.85, which beat the consensus estimate of $1.48, and revenue of $2.5 billion, surpassing expectations of $2.07 billion, the stock fell. The drop was attributed to several factors including a cautious outlook for the future, with the company forecasting lower deliveries and a decrease in the average price of homes sold for the upcoming quarter. Additionally, concerns about the housing market's sensitivity to interest rates, potential economic slowdown, and ongoing supply chain issues might have contributed to investor apprehension. The company also noted a significant backlog, but the guidance suggested a softening demand, which could have led investors to sell off shares.

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