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Despite turmoil overseas, the US economy continues to grow, increasing opportunities for domestically-focused companies.
What's at the root of the dip in existing home sales? Yahoo Finance's Julie Hyman, Adam Shapiro, Rick Newman, Mattie Duppler, National Taxpayers Union Senior Fellow, and Mark Fleming, First American Chief Economist discuss.
May.21 -- Kasowitz Benson Torres Partner Kevin Arquit and Bloomberg's Jen Rie discuss T-Mobile's takeover of Sprint with David Westin on 'Balance of Power.'
Toll Brothers (NYSE:TOL) unveiled its quarterly earnings figures late today, bringing in a profit that was stronger than it was during the year-ago quarter, while home sales revenue surged 7%, yet TOL stock took a hit after hours Tuesday.The Horsham, Penn.-based home construction business posted net income of $129.3 million for its second quarter of its fiscal 2019, roughly 87 cents per per share diluted. This was a 15.65% gain over its year-ago net income of $111.8 million, or 72 cents per share diluted.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToll Brothers added that its pre-tax income gained 15% year-over-year to $176.2 million, topping the $152.7 million from the year-ago quarter by 15.39%. Its home sales revenues were up 7% when compared to the year-ago quarter to $1.71 billion, while home building deliveries increased 1% year-over-year to 1,911.The company added that income from operations amounted to 9.4% of total revenues, while its net signed contract value was $2 billion, down 16% year-over-year. Toll Brothers' contract units were down 9% to 2,424, while backlog value at the end of the period was $5.66 billion, declining 11% year-over-year.Units in backlog came in at 6,467, falling 8%, while home sales gross margin came in at 19.7%. Its adjusted home sales gross margin, which excludes interest and inventory write-downs, tallied up to 23.5% for the three-month period.TOL stock is down about 3.5% after hours following the company's quarterly earnings results, which included mixed results including an earnings increase and a decrease in contract units. Shares had been gaining roughly 2.2% during regular trading hours. More From InvestorPlace * 7 Stocks to Buy that Lost 10% Last Week * 7 Stocks to Buy for Over 20% Upside Potential * 7 High-Yield REITs to Buy (Even When the Market Tanks) Compare Brokers The post Toll Brothers Earnings: TOL Stock Down Despite Q2 Income Growing 15% appeared first on InvestorPlace.
Toll Brothers (TOL) delivered earnings and revenue surprises of 12.99% and 11.35%, respectively, for the quarter ended April 2019. Do the numbers hold clues to what lies ahead for the stock?
U.S. luxury homebuilder Toll Brothers Inc forecast 2019 home sales below analysts' estimates and said it expected its margins to be squeezed by slowing demand and rising incentives. Full-year adjusted home sales gross margins are expected to slip to about 23% from 23.7% it reported in 2018. "Our guidance for adjusted home sales gross margin during the balance of the year reflects the slower demand and rising incentives associated with the challenging sales environment of the fall and winter as well as changes in mix," Chief Financial Officer Martin Connor said.
Toll Brothers reported unexpected fiscal Q2 earnings and home-building revenue gains, and management was upbeat on the spring selling season.
The DOJ wants to extract more concessions from T-Mobile, according to an industry analyst, and the company's leadership have personal incentives to make it happen.
On a per-share basis, the Horsham, Pennsylvania-based company said it had profit of 87 cents. The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment ...
U.S. luxury homebuilder Toll Brothers Inc posted a 15.7% rise in quarterly profit on Tuesday, boosted by higher prices and strong demand. The company's net income rose to $129.3 million, or 87 cents per ...
There's no big bang coming for investors from 5G wireless services, one Wall Street analyst says. A big run for 5G stocks isn't clear because there's no killer app for network buildouts.
Edelman Senior Vice President Ira Gorsky From Anadarko’s sale to Occidental to T-Mobile’s purchase of Sprint to Bristol Myers Squibb’s acquisition of Celgene, big deals on Wall Street often put shares in the hands of an unfamiliar investor: the risk arbitrageur, or Arb. In the article below for CorpGov, Edelman Senior Vice President Ira Gorsky […]
T-Mobile stock and Sprint stock slipped on Tuesday after rallying on merger approval. But blue states like California may try to block the deal, according to one telecommunications analyst.
A key name gave his blessing to the T-Mobile/Sprint deal, while CBS announced a bid to scoop up a premium cable network.
Until FCC chair Ajit Pai spoke on May 20, Sprint (NYSE:S) stock had been stuck at $6 for over a year. That's because in April, 2018, T-Mobile (NASDAQ:TMUS) offered $6.62 per share to buy it. The all-stock deal was struck with T-Mobile at $64.52 per share. At the May 17 opening price of $75.38 for TMUS, the buyout is now worth $7.73 per share.Source: Shutterstock But none of that matters if the deal isn't done. Sprint was practically begging regulators to sign off on it in its latest quarterly report. On May 21 there are conflicting reports about the Department of Justice's attitude, some saying it's a yes, others a no.Pai's signal that he would support the merger S stock up more than 20% as trading opened yesterday, and it kept most of those gains, closing at $7.34. But T-Mobile also rose, so Sprint's value on May 21 is over $8 if the buyout goes through.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Sprint Without T-MobileSprint lost 189,000 postpaid subscribers during its most recent quarter, along with $2.17 billion, 53 cents per share. It's the kind of news most companies bury in a press release. Sprint highlighted it. * 7 Battery Stocks for High-Powered Gains Without T-Mobile, Sprint still generated $10.4 billion in operating cash flow during fiscal 2019, ending the year with over $7 billion in cash. Sprint also reduced its debt by $2 billion during the year, to $35.36 billion, against assets of $84.1 billion.The problem is that Sprint must invest heavily to justify its spectrum investment and prepare for 5G. The company spent nearly $5 billion on the network during the year, up from $3.3 billion, so total free cash flow for the year was negative $914 million.InvestorPlace's Chris Lau notes that this means the company's plan for installing smaller cells on phone poles instead of leased towers continues. Some 30,000 have been deployed so far, meaning 80% of its precious 2.5 MHz spectrum is now sectorized in this way.But most analysts are taking the company line that Sprint's prospects are grim unless the deal gets done. Comcast (NASDAQ:CMCSA), which has been selling WiFi-based mobile under its Xfinity brand, could step in, but probably at a lower price than T-Mobile is paying.Sprint made other mistakes during the last decade, going with WiMAX technology instead of LTE for 4G service, writing off $30 billion in shutting the old Nextel network, and sitting out the 600 MHz auction in 2016, leaving it without low-band spectrum.If the deal is cancelled, some see the stock going to $3. T-Mobile Without SprintWithout Sprint, T-Mobile still looks healthy. Its own quarterly report showed net additions of 1.7 million and net income of $908 million, $1.06 per share, on revenues of $11.08 billion. T-Mobile also cut its long-term debts during the year, from $12.1 to $10.95 billion, and reported positive free cash flow of $618 million.But many of T-Mobile's expansion plans have been frozen in place by the merger, whose deadline was extended again at the end of April. The Justice Department said only "the investigation continues" and merger opponents said the companies haven't shown it to be in the public interest.Odds that the deal goes through are now little more than 50-50 even though T-Mobile is already handing out big chunks of stock to executives in anticipation. Who Else?My guess is that, after a few drinks, you'll find AT&T (NYSE:T) and Verizon Communications (NYSE:VZ) lobbyists chortling over this. The failure of this merger to launch would leave them each holding one-third of the U.S. wireless market, a dominant position against two much-smaller rivals.On the other hand, if the deal is rejected a larger company, like Alphabet (NASDAQ:GOOGL) or Amazon (NASDAQ:AMZN), could decide Sprint is cheap at $12 billion, its market cap at $3 per share. That would make the phone giants choke on those chortles. Despite their size and financial strength compared with Sprint and T-Mobile, the phone giants are tiny next to the likes of FANG. * 7 Stocks to Buy for Over 20% Upside Potential But you can't invest in fantasy. I will stay away from Sprint until there's more clarity. The best news is clarity should come soon.Dana Blankenhorn http://www.danablankenhorn.com is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AAPL and AMZN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post The Sprint Stock Rally Means Nothing With No T-Mobile Merger appeared first on InvestorPlace.
AT&T (NYSE:T) stock has struggled over the past several years as the telecommunications giant has been weighed down by a plethora of headwinds, including cord-cutting, wireless price competition, stagnating streaming growth, and a rising debt load.Source: Shutterstock T stock peaked near $45 in mid-2016. Ever since, AT&T stock has been down and out. Today, the shares trade hands at prices that are more than 25% below those peak 2016 levels. * 7 Stocks to Buy for Over 20% Upside Potential But T stock scored a huge win recently. The proposed merger between wireless peers T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) looks like it will receive regulatory approval after FCC Chairman Ajit Pai told Bloomberg that, in light of their recent concessions, he is going to recommend that his colleagues approve the merger.That's a big win for T stock. Wireless price competition has been a huge headwind for AT&T stock, especially wireless price competition from T-Mobile and Sprint. Both of those companies have compensated for often worse coverage than AT&T and Verizon (NYSE:VZ) with aggressive price cutting. Now, those two aggressive price cutters are combining. That means the wireless telecom industry will have one less overly aggressive price cutter, indicating that price competition across the whole industry will decline.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a result, the margins and stability of AT&T's core wireless business will improve. That's a big deal for T stock because the company's mobility business generated about 40% of its revenues last year. As the revenue and margin trends of that huge business rebound over the next several quarters, T stock should rally from today's depressed base. AT&T's Mobility Trends Should ImproveAT&T has always been a really large company with a lot of moving parts. After its recent acquisition of Time Warner, its business got even bigger, with even more moving parts. Among the company's businesses are wireline. entertainment. HBO, the Turner stations., Warner Bros studio and its international assets.But its most important holding is still its mobility business, which generates about $70 billion of revenue and about $30 billion of EBITDA each year. Mobility represents roughly 40% of AT&T's revenues and over 50% of its EBITDA. Thus, integral to the success of AT&T stock is the success of AT&T's mobility business.The mobility business has done just fine over the past several years, adding several thousand wireless subscribers each year and gradually expanding its EBITDA margins from the mid-30's earlier this decade to the lower-40's last year.But this business has been held back by stiff competition. Specifically, the price discounts of T-Mobile and Sprint have become tremendously aggressive over the past few years, inevitably creating somewhat of a drag on AT&T's subscriber growth and margins. That's because some of AT&T's customers are fleeing to Sprint and T-Mobile, while AT&T has tried to stymie that trend by cutting its prices.That era is officially over. T-Mobile and Sprint will likely become one combined company in the near future, meaning that there will be one less overly aggressive price cutter in the market. Thus, going forward, AT&T's mobility trends should improve. In other words, the business' EBITDA margins should move materially higher, driven by less steep discounting.As those margins improve, AT&T stock price should rally. AT&T Stock Is Too Cheap to IgnoreIn a nutshell, T stock is simply too cheap to ignore, and any and all operational improvements at these valuation levels should spark a sizable rally in AT&T stock price.Here are the valuation metrics of AT&T stock: * Forward price-earnings multiple of nine, miles below the market's average forward multiple of 16 and the stock's five-year average forward multiple of 12. * Dividend yield of 6.3%, miles above the market yield of roughly 2% and the stock's five-year average yield of 5.4%. * Trailing price-cash flow multiple below five, also well below the market's average cash flow multiple of 13 and the stock's five year average cash flow multiple of nearly 6.AT&T stock price is dirt cheap, with a single-digit forward earnings multiple, a 6% yield, and a cash flow yield above 20%. This stock is too cheap to ignore any operational improvements, especially any improvements by the all important mobility business. Thus, if AT&T's mobility business materially improves over the next few quarters, T stock should subsequently rise. The Bottom Line on T StockThe fundamentals underlying AT&T have been challenged by non-cyclical headwinds for the past several years, and as a result, T stock now trades at dirt-cheap valuation levels. Indeed, AT&T stock price is so cheap that any and all operational improvements by AT&T should spark a meaningful rally by T stock.Over the next few quarters and years, AT&T's most important business - its mobility unit - could substantially improve. As it does, T stock should rise. The increases of AT&T stock price, on top of a 6%-plus yield, should make the returns of T stock attractive over the course of the next few quarters.As of this writing, Luke Lango was long T, TMUS, and S. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Why the Outlook of AT&T Stock Just Became Brighter appeared first on InvestorPlace.
As a presidential election draws near, a politically charged environment for a deal of this magnitude presents some concern for Raymond James analyst Ric Prentiss. Shares in T-Mobile and Sprint are are down 0.7% and 1.7%, respectively.
As the highly anticipated merger between T-Mobile and Sprint hits regulatory snags, options traders are hedging their bets.
My call is to buy the stock on weakness to its semiannual value level at $36.79. Let's check the pulse of the housing market. On May 15, the National Association of Home Builders announced that their Housing Market Index rose three points to 66 in May. This reading has been above 60 for the past four months.