Toll Brothers Stock Trips On Higher Cancellation Rate

Luxury home builder Toll Brothers reported fiscal second quarter results today, and Mr. Market was not amused. Toll Brothers net income declined for the latest quarter as did income from operations. Income from operations fell from 10.1 percent of revenues last year to 8.4 percent of revenues in Q2 2018. Perhaps more concerning was the jump in Toll's cancellation rate, rising from 3.5 percent last year to 5.2 percent in the second quarter of 2018. While the absolute percentage may seem small, this is actually a significant development when you consider that Toll can be extremely [...]