Toll Brothers Get 'Encouraged'

And, MongoDB beats earnings, stock drops.

Today is Wednesday, December 6, 2023.

The Early Bird Index today is 61.98.

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Toll Brothers Get 'Encouraged'

Record financial results for Toll Brothers (NYSE: TOL) lifted shares of the homebuilder by 1.73% in after-hours trading on Tuesday.

Financials: Toll Brothers reported earnings of $4.11 per share in the past quarter and revenue of $2.95 billion; both were better than expected.

Powering the Story: What housing market problem? Toll Brothers reported a strong quarter. The net signed contract value jumped 53% and the home sales gross margin ticked up a bit.

Quote: “As we approach the start of the spring selling season in January, we are encouraged by the recent 75 basis point drop in mortgage rates.” - CEO Douglas C. Yearley, Jr.

Outlook: The company expects to deliver between 9,850 to 10,350 units in the new fiscal year.

Stock Price: Toll Brothers is up 72% this year, including an 8% jump in the last 30 days.

Final Thoughts: Despite worries about the housing market, Toll Brothers saw steady demand and produced good results. If mortgage rates drop, that would be a good sign for an otherwise tough market.

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Notables

Notable Earnings Today: GameStop (NYSE: GME), Ollie’s Bargain Outlet (Nasdaq: OLLI), C3.ai (NYSE: AI), Campbell Soup (NYSE: CPB), Chewy (NYSE: CHWY), ChargePoint (NYSE: CHPT), Greif (NYSE: GEF), Verint Systems (Nasdaq: VRNT), United Natural Foods (NYSE: UNFI), Semtech (Nasdaq: SMTC), Veeva Systems (NYSE: VEEV), Thor Industries (NYSE: THO), Brown-Forman (NYSE: BF.B), Sportsman's Warehouse (Nasdaq: SPWH), Oxford Industries (NYSE: OXM), Veera Bradley (Nasdaq: VRA), Braze (Nasdaq: BRZE), John Wiley & Sons (NYSE: WLY), Korn Ferry (NYSE: KFY), Lovesac (Nasdaq: LOVE), Duckhorn Portfolio (NYSE: NAPA).

Notable IPOs Today: Invesco Nasdaq Free Cash Flow Achievers ETF (Nasdaq: QOWZ), Hartford US Quality Growth ETF (Nasdaq: HQGO).

Notable Equity Crowdfunding Campaigns Ending Today: Reel Products (Wefunder), MySwimPro (Wefunder), Sakura Sake Bar (Honeycomb).

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Trade Balance / Imports / Exports (8:30 a.m. ET), Unit Labor Costs (8:30 a.m. ET), Nonfarm Productivity (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), Atlanta Fed GDPNow (11:30 a.m. ET).

MongoDB Beats Earnings, Stock Drops

Despite posting strong financial results, shares of the software company MongoDB (Nasdaq; MDB) fell by 5.64% in after-hours trading on Tuesday.

Financials: MongoDB reported earnings of 96 cents per share in the past quarter and revenue of $432.9 million; both were better than expected.

Outlook: The company also increased its full-year guidance and expects revenue to be around $1.65 billion.

Final Thoughts: MongoDB is up 127% this year, so maybe the stock dropped because some investors wanted to take profits.

Asana’s Loss Scares Investors

Asana (NYSE: ASAN) fell 10% in after-hours trading on Tuesday after the company posted another loss in the past quarter.

Final Thoughts: Asana is up 75% this year and its revenue keeps growing, but profitability is not in reach yet.

Trends to Watch

Get Ready for 2024: IPO Class of 2024 Is Dominated by Older Startups (The Information)

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