Options Volatility and Implied Earnings Moves Today, May 20, 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2025
0mins
Should l Buy TOL?
Source: TipRanks
Earnings Reports Today: Major companies such as Home Depot, Palo Alto Networks, and Vodafone are set to report earnings today, with expected stock movements indicated by options prices.
Options Trading Insights: Investors can analyze options activity for insights into potential stock price changes post-earnings announcements, but should conduct thorough research due to the risks involved in options trading.
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Analyst Views on TOL
Wall Street analysts forecast TOL stock price to fall
13 Analyst Rating
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 166.120
Low
110.00
Averages
150.00
High
181.00
Current: 166.120
Low
110.00
Averages
150.00
High
181.00
About TOL
Toll Brothers, Inc. is a builder of luxury homes. The Company builds new homes and communities in over 60 markets across the United States, serving first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses. It designs, builds, markets, sells, and arranges financing for an array of luxury residential single-family detached, attached, master-planned, resort-style golf, and urban low-, mid-, and high-rise communities. It also develops and operates urban and suburban for-rent apartment and student housing communities (Apartment Living) primarily through joint ventures. These projects are located in various metropolitan areas throughout the country and have generally been operated or developed with partners under the brand names Toll Brothers Apartment Living and Toll Brothers Campus Living.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Toll Brothers Set to Release Q1 Earnings
- Dividend Yield Analysis: Toll Brothers currently has an annual dividend yield of 0.60%, with a quarterly payout of 25 cents per share, totaling $1 annually, indicating the company's ability to maintain stable cash flows, which attracts income-seeking investors.
- Investment Return Calculation: Investors aiming for $500 monthly in dividends would need to hold approximately 6,000 shares of Toll Brothers, equating to about $996,720, providing a clear investment target that enhances interest in the company's stock.
- Conservative Investment Goals: For more conservative investors, targeting $100 monthly in dividends requires holding 1,200 shares, valued at around $199,344, allowing smaller investors to participate in dividend income, thereby broadening the potential investor base.
- Dividend Yield Volatility: The dividend yield fluctuates with stock price changes; if the company increases its dividend payments, the yield rises, and vice versa, necessitating that investors closely monitor market dynamics to optimize their investment decisions.
See More
Toll Brothers Q1 Earnings Exceed Expectations
- Earnings Beat: Toll Brothers reported Q1 GAAP EPS of $2.19, surpassing the analyst estimate of $2.11 and increasing 25.1% from $1.75 in the same quarter last year, indicating strong performance in the luxury market.
- Revenue Growth: The company achieved $2.15 billion in revenue for Q1, exceeding the $1.86 billion consensus and reflecting a 15.6% increase from the previous year's $1.86 billion, showcasing its diverse product offerings and geographic reach.
- Delivery Decline: Home deliveries fell to 1,899 units in Q1 from 1,991 a year ago, yet still exceeded the Visible Alpha estimate of 1,852, demonstrating resilience in market demand despite the decline.
- Margin Adjustment: The adjusted home sales gross margin outlook was lowered to 25.5% from 26.0%, which may impact future profitability, although the company maintains its full-year delivery guidance of 10,300 to 10,700 homes.
See More
Palo Alto Networks Issues Weak Earnings Forecast, Shares Drop
- Weak Earnings Outlook: Palo Alto Networks forecasts adjusted earnings for Q3 between 78 to 80 cents per share, significantly below the LSEG consensus of 92 cents, resulting in a nearly 6% drop in shares, indicating market concerns over its future profitability.
- Steady Growth Performance: Cadence Design Systems saw its shares rise nearly 4%, projecting full-year adjusted earnings between $8.05 and $8.15 per share, in line with LSEG consensus, while its year-end backlog for 2025 reached a record $7.8 billion, reflecting strong market demand.
- Revenue Exceeds Expectations: Caesars Entertainment reported Q4 revenue of $2.92 billion, surpassing the LSEG consensus of $2.89 billion, with adjusted EBITDA increasing from $20 million last year to $85 million, indicating significant progress in operational recovery.
- Sales Revenue Steady: Toll Brothers reported home sales revenue of $1.85 billion in Q1, matching LSEG consensus, with gross margins at 24.8%, demonstrating the company's stable performance amid competitive market conditions.
See More
Toll Brothers Q1 Earnings Beat Expectations
- Strong Earnings Performance: Toll Brothers reported a Q1 GAAP EPS of $2.19, beating expectations by $0.07, indicating robust profitability that is likely to positively impact stock prices.
- Significant Revenue Growth: The company achieved revenues of $2.15 billion in Q1, a 15.6% year-over-year increase, surpassing market expectations by $290 million, reflecting strong performance in home sales and reinforcing its market position.
- Stable Contract Value: The net signed contract value reached $2.38 billion, slightly above last year's $2.31 billion, indicating sustained customer demand despite a decline in delivered homes, showcasing market resilience.
- Optimistic Future Outlook: The company projects deliveries between 2,400 and 2,500 units for Q2 and an average delivered price of $975,000 to $985,000 for FY 2026, demonstrating management's confidence in future market conditions and proactive growth strategies.
See More
Toll Brothers Reports Strong Q1 Results with Increased Earnings and Sales
- Net Income Growth: In Q1 FY2026, Toll Brothers reported net income of $210.9 million and earnings per share of $2.19, marking a 25% increase from $177.7 million and $1.75 per share in Q1 FY2025, indicating strong performance in the luxury housing market.
- Stable Sales Revenue: The company achieved home sales revenue of $1.85 billion with 1,899 homes delivered in the first quarter, reflecting a slight decrease in deliveries but an increase in revenue compared to $1.84 billion in Q1 FY2025, showcasing sustained demand in the high-end market.
- Contract Value Increase: The net signed contract value for the quarter reached $2.38 billion, up 3% from $2.31 billion in the same period last year, demonstrating the company's competitive edge and stable customer demand in the luxury housing sector.
- Cash Flow and Asset Management: At the end of Q1, Toll Brothers owned or controlled approximately 75,000 lots, projecting an annual community count growth of 8% to 10% in FY2026, highlighting the company's strength in land resource management and potential for future expansion.
See More
Market Update: Key Insights Ahead of Closing Bell
- Tech Stock Divergence: Salesforce shares fell over 3%, while CrowdStrike and Palo Alto Networks dropped 4.5% and 2%, respectively, indicating market concerns about AI's impact on enterprise software, which may weaken investor confidence in these companies.
- Apple's Strong Performance: Apple shares rose more than 3.5%, making it the biggest winner on Tuesday, as the market anticipates the unveiling of its latest budget iPhone next month, showcasing its competitive advantage gained from the AI disruption and further solidifying its market position.
- BlackRock Investment Dynamics: ValueAct's stake in BlackRock has garnered attention, with co-CEO Mason Morfit highlighting the unique advantages of BlackRock's Aladdin platform in investment management software, which is expected to enhance investment decision-making efficiency through AI technology, boosting its competitive edge.
- Dover's Order Acceleration: Dover CEO Andrew Tobin noted an acceleration in orders heading into 2026, a trend not seen at the same time last year, particularly in the Clean Energy segment's Fueling Solutions business, which is expected to enter a three-year upcycle, reflecting the company's confidence in future growth.
See More
Toll Brothers Set to Release Q1 Earnings
- Dividend Yield Analysis: Toll Brothers currently has an annual dividend yield of 0.60%, with a quarterly payout of 25 cents per share, totaling $1 annually, indicating the company's ability to maintain stable cash flows, which attracts income-seeking investors.
- Investment Return Calculation: Investors aiming for $500 monthly in dividends would need to hold approximately 6,000 shares of Toll Brothers, equating to about $996,720, providing a clear investment target that enhances interest in the company's stock.
- Conservative Investment Goals: For more conservative investors, targeting $100 monthly in dividends requires holding 1,200 shares, valued at around $199,344, allowing smaller investors to participate in dividend income, thereby broadening the potential investor base.
- Dividend Yield Volatility: The dividend yield fluctuates with stock price changes; if the company increases its dividend payments, the yield rises, and vice versa, necessitating that investors closely monitor market dynamics to optimize their investment decisions.
See More
Toll Brothers Q1 Earnings Exceed Expectations
- Earnings Beat: Toll Brothers reported Q1 GAAP EPS of $2.19, surpassing the analyst estimate of $2.11 and increasing 25.1% from $1.75 in the same quarter last year, indicating strong performance in the luxury market.
- Revenue Growth: The company achieved $2.15 billion in revenue for Q1, exceeding the $1.86 billion consensus and reflecting a 15.6% increase from the previous year's $1.86 billion, showcasing its diverse product offerings and geographic reach.
- Delivery Decline: Home deliveries fell to 1,899 units in Q1 from 1,991 a year ago, yet still exceeded the Visible Alpha estimate of 1,852, demonstrating resilience in market demand despite the decline.
- Margin Adjustment: The adjusted home sales gross margin outlook was lowered to 25.5% from 26.0%, which may impact future profitability, although the company maintains its full-year delivery guidance of 10,300 to 10,700 homes.
See More
Palo Alto Networks Issues Weak Earnings Forecast, Shares Drop
- Weak Earnings Outlook: Palo Alto Networks forecasts adjusted earnings for Q3 between 78 to 80 cents per share, significantly below the LSEG consensus of 92 cents, resulting in a nearly 6% drop in shares, indicating market concerns over its future profitability.
- Steady Growth Performance: Cadence Design Systems saw its shares rise nearly 4%, projecting full-year adjusted earnings between $8.05 and $8.15 per share, in line with LSEG consensus, while its year-end backlog for 2025 reached a record $7.8 billion, reflecting strong market demand.
- Revenue Exceeds Expectations: Caesars Entertainment reported Q4 revenue of $2.92 billion, surpassing the LSEG consensus of $2.89 billion, with adjusted EBITDA increasing from $20 million last year to $85 million, indicating significant progress in operational recovery.
- Sales Revenue Steady: Toll Brothers reported home sales revenue of $1.85 billion in Q1, matching LSEG consensus, with gross margins at 24.8%, demonstrating the company's stable performance amid competitive market conditions.
See More
Toll Brothers Q1 Earnings Beat Expectations
- Strong Earnings Performance: Toll Brothers reported a Q1 GAAP EPS of $2.19, beating expectations by $0.07, indicating robust profitability that is likely to positively impact stock prices.
- Significant Revenue Growth: The company achieved revenues of $2.15 billion in Q1, a 15.6% year-over-year increase, surpassing market expectations by $290 million, reflecting strong performance in home sales and reinforcing its market position.
- Stable Contract Value: The net signed contract value reached $2.38 billion, slightly above last year's $2.31 billion, indicating sustained customer demand despite a decline in delivered homes, showcasing market resilience.
- Optimistic Future Outlook: The company projects deliveries between 2,400 and 2,500 units for Q2 and an average delivered price of $975,000 to $985,000 for FY 2026, demonstrating management's confidence in future market conditions and proactive growth strategies.
See More
Toll Brothers Reports Strong Q1 Results with Increased Earnings and Sales
- Net Income Growth: In Q1 FY2026, Toll Brothers reported net income of $210.9 million and earnings per share of $2.19, marking a 25% increase from $177.7 million and $1.75 per share in Q1 FY2025, indicating strong performance in the luxury housing market.
- Stable Sales Revenue: The company achieved home sales revenue of $1.85 billion with 1,899 homes delivered in the first quarter, reflecting a slight decrease in deliveries but an increase in revenue compared to $1.84 billion in Q1 FY2025, showcasing sustained demand in the high-end market.
- Contract Value Increase: The net signed contract value for the quarter reached $2.38 billion, up 3% from $2.31 billion in the same period last year, demonstrating the company's competitive edge and stable customer demand in the luxury housing sector.
- Cash Flow and Asset Management: At the end of Q1, Toll Brothers owned or controlled approximately 75,000 lots, projecting an annual community count growth of 8% to 10% in FY2026, highlighting the company's strength in land resource management and potential for future expansion.
See More
Market Update: Key Insights Ahead of Closing Bell
- Tech Stock Divergence: Salesforce shares fell over 3%, while CrowdStrike and Palo Alto Networks dropped 4.5% and 2%, respectively, indicating market concerns about AI's impact on enterprise software, which may weaken investor confidence in these companies.
- Apple's Strong Performance: Apple shares rose more than 3.5%, making it the biggest winner on Tuesday, as the market anticipates the unveiling of its latest budget iPhone next month, showcasing its competitive advantage gained from the AI disruption and further solidifying its market position.
- BlackRock Investment Dynamics: ValueAct's stake in BlackRock has garnered attention, with co-CEO Mason Morfit highlighting the unique advantages of BlackRock's Aladdin platform in investment management software, which is expected to enhance investment decision-making efficiency through AI technology, boosting its competitive edge.
- Dover's Order Acceleration: Dover CEO Andrew Tobin noted an acceleration in orders heading into 2026, a trend not seen at the same time last year, particularly in the Clean Energy segment's Fueling Solutions business, which is expected to enter a three-year upcycle, reflecting the company's confidence in future growth.
See More
