Toll Brothers Q1 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy TOL?
Source: seekingalpha
- 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.
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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: 163.830
Low
110.00
Averages
150.00
High
181.00
Current: 163.830
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 Q1 Earnings Beat Expectations
- Earnings Beat: Toll Brothers reported Q1 earnings that exceeded market expectations, showcasing the company's strong performance in the luxury housing market, which is likely to drive stock price appreciation.
- Strong Demand: Analysts noted robust demand for move-up and luxury homes, indicating a rebound in consumer confidence that could foster future sales growth.
- Guidance Reaffirmed: The company reiterated its FY26 guidance, reflecting confidence in future market conditions, which is expected to attract more investor interest.
- Optimistic Market Outlook: With economic recovery and shifts in consumer preferences, Toll Brothers' positioning in the luxury housing market will provide a competitive edge, further solidifying its market share.
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Toll Brothers Q1 2026 Earnings Highlights
- Leadership Transition: Toll Brothers announced that Karl Mistry will take over as CEO on March 30, marking the third CEO transition in the company's history, which is expected to drive the company into a new phase of growth.
- Strong Financial Performance: The company delivered 1,899 homes in Q1, generating $1.85 billion in revenue, exceeding the midpoint of guidance by approximately $24 million, with earnings per share at $2.19, reflecting a 25% year-over-year increase and showcasing robust execution in the market.
- Contract Signing Activity: The quarter saw 2,303 net contracts signed for $2.4 billion, with unit numbers flat but a 3% revenue increase due to an average sales price rise to $1,033,000, indicating stable market demand.
- Future Outlook: The company projects Q2 deliveries of 2,400 to 2,500 homes and maintains a full-year target of 10,300 to 10,700 homes, demonstrating confidence in the market and a strategic plan for continued growth.
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Toll Brothers Q1 Earnings Beat Expectations
- Earnings Beat: Toll Brothers reported Q1 earnings of $2.19 per share, exceeding the consensus estimate of $2.11, indicating strong performance in the current market environment, which may attract more investor interest.
- Stable Revenue: The company’s housing revenues reached $1.8 billion, in line with forecasts, although the average home price was lower than expected at $976,900, the number of homes closed exceeded expectations, reflecting robust market demand.
- Guidance Reaffirmed: Toll Brothers reiterated its fiscal 2026 guidance, which analysts believe will serve as a bullish talking point, demonstrating the company's confidence in future growth.
- Market Positioning Advantage: Despite a 0.41% decline in shares to $163.61, Toll Brothers trades at a premium to peers, justified by the company’s focus on move-up and luxury buyers, who have shown better demand trends in the market.
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Toll Brothers' Earnings Exceed Expectations, Indicating a Robust Luxury Housing Market
- Housing Demand Trends: Early signs indicate that housing demand is slightly higher compared to last year, according to executives at Toll Brothers.
- Toll Brothers Insights: The home builder's executives shared their observations on the current market conditions during a recent statement.
See More
U.S. Stock Futures Rise, Investors Eye Individual Stocks
- Market Dynamics: U.S. stock futures are trading higher this Wednesday morning, indicating a positive sentiment among investors that could influence trading decisions today.
- Investor Focus: As futures rise, investors may pay closer attention to the performance of specific stocks, especially amid increasing market volatility.
- Premarket Coverage: Benzinga's premarket coverage highlights the market's interest in individual stocks, potentially guiding investors' buying and selling strategies.
- Data Source: Market news and data provided by Benzinga APIs offer real-time information to investors, assisting them in making more informed investment decisions.
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Toll Brothers Q1 Earnings Beat Expectations
- Earnings Beat: Toll Brothers reported Q1 earnings that exceeded market expectations, showcasing the company's strong performance in the luxury housing market, which is likely to drive stock price appreciation.
- Strong Demand: Analysts noted robust demand for move-up and luxury homes, indicating a rebound in consumer confidence that could foster future sales growth.
- Guidance Reaffirmed: The company reiterated its FY26 guidance, reflecting confidence in future market conditions, which is expected to attract more investor interest.
- Optimistic Market Outlook: With economic recovery and shifts in consumer preferences, Toll Brothers' positioning in the luxury housing market will provide a competitive edge, further solidifying its market share.
See More
Walmart Quarterly Earnings and Market Trends
- Walmart Earnings Release: Walmart is set to report its quarterly earnings live from Nasdaq in Times Square, which is expected to have a direct impact on its stock price, especially as it has already fallen 6% from its 52-week high.
- Market Performance Analysis: The S&P 500 has risen 1.8% this week, although it remains the worst performer year-to-date, down nearly 4.3%, indicating market volatility and investor caution.
- Global Payments Strong Rebound: Global Payments shares surged 16% on Wednesday, driven by better-than-expected earnings and guidance, reflecting market confidence in its future growth prospects.
- Real Estate Market Dynamics: Cushman & Wakefield is set to report quarterly results, with its stock down 8% over the past three months, highlighting challenges in the commercial real estate market, and investors should pay attention to the upcoming pending home sales data.
See More
Toll Brothers Q1 2026 Earnings Highlights
- Leadership Transition: Toll Brothers announced that Karl Mistry will take over as CEO on March 30, marking the third CEO transition in the company's history, which is expected to drive the company into a new phase of growth.
- Strong Financial Performance: The company delivered 1,899 homes in Q1, generating $1.85 billion in revenue, exceeding the midpoint of guidance by approximately $24 million, with earnings per share at $2.19, reflecting a 25% year-over-year increase and showcasing robust execution in the market.
- Contract Signing Activity: The quarter saw 2,303 net contracts signed for $2.4 billion, with unit numbers flat but a 3% revenue increase due to an average sales price rise to $1,033,000, indicating stable market demand.
- Future Outlook: The company projects Q2 deliveries of 2,400 to 2,500 homes and maintains a full-year target of 10,300 to 10,700 homes, demonstrating confidence in the market and a strategic plan for continued growth.
See More
Toll Brothers Q1 Earnings Beat Expectations
- Earnings Beat: Toll Brothers reported Q1 earnings of $2.19 per share, exceeding the consensus estimate of $2.11, indicating strong performance in the current market environment, which may attract more investor interest.
- Stable Revenue: The company’s housing revenues reached $1.8 billion, in line with forecasts, although the average home price was lower than expected at $976,900, the number of homes closed exceeded expectations, reflecting robust market demand.
- Guidance Reaffirmed: Toll Brothers reiterated its fiscal 2026 guidance, which analysts believe will serve as a bullish talking point, demonstrating the company's confidence in future growth.
- Market Positioning Advantage: Despite a 0.41% decline in shares to $163.61, Toll Brothers trades at a premium to peers, justified by the company’s focus on move-up and luxury buyers, who have shown better demand trends in the market.
See More
Toll Brothers' Earnings Exceed Expectations, Indicating a Robust Luxury Housing Market
- Housing Demand Trends: Early signs indicate that housing demand is slightly higher compared to last year, according to executives at Toll Brothers.
- Toll Brothers Insights: The home builder's executives shared their observations on the current market conditions during a recent statement.
See More
U.S. Stock Futures Rise, Investors Eye Individual Stocks
- Market Dynamics: U.S. stock futures are trading higher this Wednesday morning, indicating a positive sentiment among investors that could influence trading decisions today.
- Investor Focus: As futures rise, investors may pay closer attention to the performance of specific stocks, especially amid increasing market volatility.
- Premarket Coverage: Benzinga's premarket coverage highlights the market's interest in individual stocks, potentially guiding investors' buying and selling strategies.
- Data Source: Market news and data provided by Benzinga APIs offer real-time information to investors, assisting them in making more informed investment decisions.
See More
