Key Takeaways Toll Brothers shares slumped Wednesday after the homebuilder posted weaker-than-expected results and warned about demand in some markets.CEO Douglas Yearley, Jr. said that while demand for higher-priced homes has been solid,

Toll Brothers stock dropped 5.8% in Wednesday premarket trading after the homebuilder's fiscal Q1 earnings and revenue failed to meet Wall Street expectations, even though it reaffirmed full-year guidance.

Toll Brothers shares closed nearly 6% lower on Wednesday after the builder reported first-quarter earnings and sales that fell below analyst expectations.It wasn’t high housing costs or increased competition from more homes on the market that led to the miss,