- Toll Brothers reported a 3rd quarter revenue of $2.95 billion, an increase of 8% compared to last year, and exceeded the estimated $2.86 billion.
- Earnings per share (EPS) stood at $3.73, higher than the previous year’s $3.60.
- The company recorded net signed contracts of 2,388 units, a 4.1% decrease year-over-year, falling short of the estimated 2,583 units.
- There was a 4% increase in the end community count, reaching 420, though it was slightly below the estimate of 430.57.
- Total home sales reached 2,959, up 5.2% from the previous year and above the estimate of 2,927.
- Toll Brothers‘ backlog was recorded at 5,492, lower than the estimated 5,720.
- The backlog in dollar terms amounted to $6.38 billion, a decline of 9.8% year-over-year but slightly above the estimated $6.32 billion.
- The adjusted home sales gross margin was 27.5%, down from last year’s 28.8%, but surpassed the estimate of 27.3%.
- SG&A expenses as a percentage of home sales revenue were reduced to 8.8%, compared to 9% the previous year, and came in below the estimated 9.17%.
- The company’s contract dollars remained flat despite a 4% decline in unit sales.
- Analysts’ recommendations include 12 buys, 5 holds, and 2 sells for the company’s stock.
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Toll Brothers on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely covering Toll Brothers, Inc. and their recent developments. In a bullish sentiment report titled “Toll Brothers: Will Its Spec Home Strategy & Market Adaptation Be A Breakthrough Move?”, Baptista Research delves into Toll Brothers‘ second-quarter earnings for fiscal 2025. The report highlights Toll Brothers‘ strong financial performance, including record second-quarter home sales revenue of $2.71 billion, exceeding their guidance by $236 million. With 2,899 homes delivered at an average selling price of $934,000, Toll Brothers showcased resilience and strategic market positioning in a challenging economic environment.
A look at Toll Brothers Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking at Toll Brothers, the company’s Smartkarma Smart Scores paint a positive picture for its long-term outlook. With a high score in momentum, Toll Brothers seems to be on a strong upward trajectory. Its solid value and growth scores indicate good potential for future performance and expansion. While the dividend score is not as high, the company’s focus on luxury homes for move-up and empty nester buyers positions it well in the market.
Toll Brothers, Inc., known for building luxury homes across various regions in the United States, appears to have a strong foundation for continued growth and resilience. Its diverse operations, ranging from architectural design to insurance brokerage, provide a solid backbone for the company’s operations. Overall, with favorable scores in key areas such as value and growth, Toll Brothers seems well-positioned for long-term success in the luxury homebuilding market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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