Diamonds and Dogs
Today's diamond builds luxury homes, and with today's spike, you might be able to buy one. Toll Brothers (TOL) jumped 8% back toward the April highs thanks to better than expected earnings. Toll designs, constructions, and markets homes and converts existing rental apartment buildings into high, mid, and low-rise luxury homes. Revenue and earnings came in better than expected as the company delivered 1,304 homes in the second quarter which represents a 31% increase in dollar terms compared to a year ago. The company also raised their guidance to expect deliveries of 5,800 to 6,300 in the current year with an average price range between $820,000 and $850,000. Not bad Toll.
This is not the Best Buy in the markets today. Best Buy Co. (BBY) dropped over 7% even though earnings were better than expected. The consumer electronics retailer reported Q1 earnings of 44 cents per share with revenue of $8.44 billion ahead of consensus of 35 cents per share and $8.33 billion in sales. The disappointment came with the guidance. The company forecasted a weak second quarter with revenues falling between $8.35-8.45 billion, a drop of 2.1-0.9% from a year ago. They also expect to see a decline in earnings per share compared to the same quarter a year ago. Another retailer bites the dust.