Toll Brothers Q2 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 55 minutes ago
0mins
Should l Buy TOL?
Source: seekingalpha
- Sales Revenue Growth: Toll Brothers reported home sales revenue of $2.51 billion in Q2, which, despite a year-over-year decline, exceeded the market expectation of $2.40 billion, demonstrating the company's resilience in the market.
- Profitability Improvement: The earnings per share stood at $2.72, beating the market consensus of $2.57, although it was lower than the $3.50 reported in the same period last year, reflecting the company's success in cost control.
- Delivery Volume Changes: The company delivered 2,491 homes during the quarter, falling short of last year's 2,899 homes and the consensus estimate of 2,455 homes, indicating the impact of supply chain challenges on delivery capacity.
- Full-Year Guidance Raised: Based on year-to-date performance, Toll Brothers raised its full-year delivery guidance to a range of 10,400 to 10,700 units, showcasing confidence in future market conditions.
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Analyst Views on TOL
Wall Street analysts forecast TOL stock price to rise
13 Analyst Rating
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 126.970
Low
110.00
Averages
150.00
High
181.00
Current: 126.970
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 Earnings Preview: Revenue Expectations Decline
- Revenue Performance Review: Toll Brothers reported revenues of $2.15 billion last quarter, reflecting a 15.4% year-over-year increase that surpassed analyst expectations, indicating strong market performance and profitability.
- Market Expectation Decline: This quarter, the market anticipates an 11.7% year-over-year revenue decline for Toll Brothers, marking a further deceleration from the 3.5% decrease recorded in the same quarter last year, highlighting concerns about future growth.
- Analyst Confidence: Over the past 30 days, the majority of analysts covering Toll Brothers have reaffirmed their estimates, suggesting optimism regarding the company's stability ahead of earnings, as it rarely misses Wall Street's revenue forecasts historically.
- Stock Price Volatility Analysis: Despite mixed earnings reports from peers like Taylor Morrison and TopBuild, Toll Brothers has seen its stock price drop 13.9% over the past month, with a current price of $126.84 against an average analyst price target of $168.38, reflecting cautious market sentiment about its future performance.
See More
Toll Brothers Set to Announce Q2 Earnings on May 19
- Earnings Announcement: Toll Brothers (TOL) is set to release its Q2 2023 earnings report on May 19 after market close, with consensus EPS estimate at $2.59, reflecting a 26% year-over-year decline, and revenue estimate at $2.42 billion, down 11.7% year-over-year.
- Historical Performance: Over the past two years, Toll Brothers has exceeded EPS estimates 75% of the time and revenue estimates 100% of the time, indicating a strong track record of financial performance and reliability.
- Estimate Revisions: In the last three months, EPS estimates have seen one upward revision and ten downward revisions, while revenue estimates have experienced six upward and four downward revisions, highlighting market uncertainty regarding the company's future performance.
- Market Analysis Perspective: Despite a cautious outlook on Toll Brothers' stock, analysts remain reassured by its valuation and fundamentals, suggesting that investors should carefully evaluate the timing of potential purchases in the current market environment.
See More
Toll Brothers Q2 Earnings Beat Expectations with Strong Guidance
- Earnings Performance: Toll Brothers reported a GAAP EPS of $2.72 for Q2, beating expectations by $0.14, which demonstrates the company's resilience amid market fluctuations and boosts investor confidence.
- Slight Revenue Decline: The revenue of $2.53 billion, while down 7.7% year-over-year, exceeded expectations by $110 million, indicating the company's ability to maintain relatively stable sales performance in challenging conditions.
- Backlog Analysis: The backlog value stood at $6.32 billion at the end of Q2, down from $6.84 billion in Q2 FY 2025, reflecting shifts in market demand and necessitating close attention to future delivery capabilities.
- Future Financial Guidance: The company anticipates delivering between 2,600 and 2,700 homes in Q3 and 10,400 to 10,700 homes for the full fiscal year, with average delivered prices ranging from $965,000 to $1,000,000, reflecting a cautiously optimistic outlook for the market ahead.
See More
Toll Brothers Q2 Earnings Exceed Expectations
- Sales Revenue Growth: Toll Brothers reported home sales revenue of $2.51 billion in Q2, which, despite a year-over-year decline, exceeded the market expectation of $2.40 billion, demonstrating the company's resilience in the market.
- Profitability Improvement: The earnings per share stood at $2.72, beating the market consensus of $2.57, although it was lower than the $3.50 reported in the same period last year, reflecting the company's success in cost control.
- Delivery Volume Changes: The company delivered 2,491 homes during the quarter, falling short of last year's 2,899 homes and the consensus estimate of 2,455 homes, indicating the impact of supply chain challenges on delivery capacity.
- Full-Year Guidance Raised: Based on year-to-date performance, Toll Brothers raised its full-year delivery guidance to a range of 10,400 to 10,700 units, showcasing confidence in future market conditions.
See More
Toll Brothers Reports Decline in Q2 Earnings
- Earnings Decline: Toll Brothers reported a net income of $260.59 million for Q2, translating to an EPS of $2.72, which marks a significant drop from last year's $352.44 million and $3.50 per share, indicating challenges faced by the company in the current market.
- Revenue Decrease: The company's revenue fell by 7.3% to $2.53 billion compared to $2.73 billion last year, reflecting the direct impact of a sluggish real estate market on sales performance.
- Market Environment Impact: Rising interest rates and economic uncertainty have weakened consumer demand for home purchases, leading to the company's performance decline, suggesting a need for strategic adjustments to navigate market changes.
- Outlook Considerations: Despite the current underperformance, Toll Brothers must remain vigilant to market dynamics to restore profitability and enhance market share in the future.
See More
Toll Brothers Reports Strong Q2 Results with Increased Guidance
- Financial Performance Review: Toll Brothers reported a net income of $260.6 million and earnings per share of $2.72 for Q2 FY2026, although down from $352.4 million and $3.50 in Q2 FY2025, the results exceeded market expectations, demonstrating resilience in a challenging market.
- Sales Revenue Changes: The home sales revenue for the second quarter was $2.51 billion with 2,491 homes delivered, down from $2.71 billion and 2,899 homes in FY2025, reflecting market demand fluctuations; however, the net signed contract value increased to $2.81 billion, indicating future sales potential.
- Margin and Cost Control: The home sales gross margin was 23.9%, down from 26.0% in FY2025, while the adjusted gross margin was 26.2%, exceeding guidance by 70 basis points, highlighting the company's ongoing efforts in cost control and operational efficiency.
- Stock Buyback and Shareholder Returns: The company repurchased approximately 1.2 million shares for a total of $175.4 million in Q2 and raised its quarterly dividend, reflecting a commitment to shareholder returns while laying a financial foundation for future growth.
See More
Toll Brothers Earnings Preview: Revenue Expectations Decline
- Revenue Performance Review: Toll Brothers reported revenues of $2.15 billion last quarter, reflecting a 15.4% year-over-year increase that surpassed analyst expectations, indicating strong market performance and profitability.
- Market Expectation Decline: This quarter, the market anticipates an 11.7% year-over-year revenue decline for Toll Brothers, marking a further deceleration from the 3.5% decrease recorded in the same quarter last year, highlighting concerns about future growth.
- Analyst Confidence: Over the past 30 days, the majority of analysts covering Toll Brothers have reaffirmed their estimates, suggesting optimism regarding the company's stability ahead of earnings, as it rarely misses Wall Street's revenue forecasts historically.
- Stock Price Volatility Analysis: Despite mixed earnings reports from peers like Taylor Morrison and TopBuild, Toll Brothers has seen its stock price drop 13.9% over the past month, with a current price of $126.84 against an average analyst price target of $168.38, reflecting cautious market sentiment about its future performance.
See More
Toll Brothers Set to Announce Q2 Earnings on May 19
- Earnings Announcement: Toll Brothers (TOL) is set to release its Q2 2023 earnings report on May 19 after market close, with consensus EPS estimate at $2.59, reflecting a 26% year-over-year decline, and revenue estimate at $2.42 billion, down 11.7% year-over-year.
- Historical Performance: Over the past two years, Toll Brothers has exceeded EPS estimates 75% of the time and revenue estimates 100% of the time, indicating a strong track record of financial performance and reliability.
- Estimate Revisions: In the last three months, EPS estimates have seen one upward revision and ten downward revisions, while revenue estimates have experienced six upward and four downward revisions, highlighting market uncertainty regarding the company's future performance.
- Market Analysis Perspective: Despite a cautious outlook on Toll Brothers' stock, analysts remain reassured by its valuation and fundamentals, suggesting that investors should carefully evaluate the timing of potential purchases in the current market environment.
See More
Toll Brothers Q2 Earnings Beat Expectations with Strong Guidance
- Earnings Performance: Toll Brothers reported a GAAP EPS of $2.72 for Q2, beating expectations by $0.14, which demonstrates the company's resilience amid market fluctuations and boosts investor confidence.
- Slight Revenue Decline: The revenue of $2.53 billion, while down 7.7% year-over-year, exceeded expectations by $110 million, indicating the company's ability to maintain relatively stable sales performance in challenging conditions.
- Backlog Analysis: The backlog value stood at $6.32 billion at the end of Q2, down from $6.84 billion in Q2 FY 2025, reflecting shifts in market demand and necessitating close attention to future delivery capabilities.
- Future Financial Guidance: The company anticipates delivering between 2,600 and 2,700 homes in Q3 and 10,400 to 10,700 homes for the full fiscal year, with average delivered prices ranging from $965,000 to $1,000,000, reflecting a cautiously optimistic outlook for the market ahead.
See More
Toll Brothers Q2 Earnings Exceed Expectations
- Sales Revenue Growth: Toll Brothers reported home sales revenue of $2.51 billion in Q2, which, despite a year-over-year decline, exceeded the market expectation of $2.40 billion, demonstrating the company's resilience in the market.
- Profitability Improvement: The earnings per share stood at $2.72, beating the market consensus of $2.57, although it was lower than the $3.50 reported in the same period last year, reflecting the company's success in cost control.
- Delivery Volume Changes: The company delivered 2,491 homes during the quarter, falling short of last year's 2,899 homes and the consensus estimate of 2,455 homes, indicating the impact of supply chain challenges on delivery capacity.
- Full-Year Guidance Raised: Based on year-to-date performance, Toll Brothers raised its full-year delivery guidance to a range of 10,400 to 10,700 units, showcasing confidence in future market conditions.
See More
Toll Brothers Reports Decline in Q2 Earnings
- Earnings Decline: Toll Brothers reported a net income of $260.59 million for Q2, translating to an EPS of $2.72, which marks a significant drop from last year's $352.44 million and $3.50 per share, indicating challenges faced by the company in the current market.
- Revenue Decrease: The company's revenue fell by 7.3% to $2.53 billion compared to $2.73 billion last year, reflecting the direct impact of a sluggish real estate market on sales performance.
- Market Environment Impact: Rising interest rates and economic uncertainty have weakened consumer demand for home purchases, leading to the company's performance decline, suggesting a need for strategic adjustments to navigate market changes.
- Outlook Considerations: Despite the current underperformance, Toll Brothers must remain vigilant to market dynamics to restore profitability and enhance market share in the future.
See More
Toll Brothers Reports Strong Q2 Results with Increased Guidance
- Financial Performance Review: Toll Brothers reported a net income of $260.6 million and earnings per share of $2.72 for Q2 FY2026, although down from $352.4 million and $3.50 in Q2 FY2025, the results exceeded market expectations, demonstrating resilience in a challenging market.
- Sales Revenue Changes: The home sales revenue for the second quarter was $2.51 billion with 2,491 homes delivered, down from $2.71 billion and 2,899 homes in FY2025, reflecting market demand fluctuations; however, the net signed contract value increased to $2.81 billion, indicating future sales potential.
- Margin and Cost Control: The home sales gross margin was 23.9%, down from 26.0% in FY2025, while the adjusted gross margin was 26.2%, exceeding guidance by 70 basis points, highlighting the company's ongoing efforts in cost control and operational efficiency.
- Stock Buyback and Shareholder Returns: The company repurchased approximately 1.2 million shares for a total of $175.4 million in Q2 and raised its quarterly dividend, reflecting a commitment to shareholder returns while laying a financial foundation for future growth.
See More
