Homebuilding Stock Heads for 5th Post-Earnings Loss

Homebuilding stock Toll Brothers Inc (NYSE:TOL) was last seen down 1.6% at $134.00, after mixed fiscal fourth-quarter results. The company posted earnings of $4.58 per share, missing analyst expectations of $4.87 per share and falling five cents from the same quarter a year ago. Meanwhile revenue of $3.42 billion surpassed estimates of $3.31 billion and representing a 2.7% increase from last year's same quarter. 

The company also issued warnings of soft demand moving forward, saying they won't be able to tell until late January whether a “choppy” environment for home sales will improve.

On the charts, TOL is headed for its fourth-straight drop, though support at the 140-day moving average is keeping losses in check. Since the start of the year, the equity is holding on to a 4.7% lead. Should these losses hold, it will be the equity's fifth consecutive post-earnings loss. 

Options traders are chiming in after the event, with 5,700 calls and 3,199 puts exchanged so far -- 3.5 times TOL's average daily options volume already. The December 150 call is the most popular, followed by the 125 call in the same series, with new positions opening at the January 2026 135-strike call.