Why Toll Brothers, e.l.f. Beauty, and Momo Slumped Today
The stock market surged higher Tuesday, as investors looked to regain some of the considerable losses from late last week. The major benchmarks gained three-quarters of a percent or more, with the technology-laden NASDAQ index leading the markets higher with a more than 1% gain, after falling further in previous market sessions. Even though sentiment on Wall Street was generally positive, some companies were left out of the rally. Toll Brothers, Inc. (NYSE: TOL), e.l.f. Beauty, Inc. (NYSE: ELF), and Momo Inc. (NASDAQ: MOMO) were among the worst performers today. Let's look more closely at these stocks and why they did so poorly.
Toll Brothers fell 3% after reporting mixed financial results. The luxury homebuilder said that home sales grew 18% from the previous year's period, narrowly missing investors' expectations. The number of homes sold increased by 26% compared to the same period last year. Even though overall net income increased 41%, and the company's earnings were better than expected, investors seemed to focus on the decline in the average selling price per home, which fell more than 6%. Toll Brothers' high-end homes can cost upward of $2 million, so this indicates a decline in the sale of higher-priced units. Additionally, a floor joist recall by a major lumber manufacturer delayed the delivery of 150 homes to buyers.
Image source: Toll Brothers.
Source: Fool.com
