- Toll Brothers‘ 4Q revenue reported at $3.42 billion, a 2.7% increase year-over-year, exceeding the estimated $3.31 billion.
- Earnings per share (EPS) for the quarter were $4.58, slightly lower than the previous year’s $4.63.
- Net signed contracts decreased by 2.3% year-over-year to 2,598 units, still surpassing the estimate of 2,475 units.
- The number of community counts ended at 446, showing a 9.3% increase year-over-year, above the estimated 443.69.
- Total home sales amounted to 3,443, a slight increase of 0.3% compared to last year, and exceeded the estimated 3,361.
- Backlog stood at 4,647 units, higher than the estimate of 4,605.
- Backlog value came in at $5.49 billion, which is a 15% decrease year-over-year, but above the expected $5.35 billion.
- The adjusted home sales gross margin was 27.1%, slightly below the previous year’s 27.9%, yet met the 27% estimate.
- SG&A expenses as a percentage of home sales revenue were consistent with last year at 8.3%, compared to the estimate of 8.27%.
- The company attributed the modest miss on EPS to a delayed closing of their Apartment Living business sale announced in September.
- Toll Brothers highlights its luxury business’s uniqueness, catering to a more affluent client base less affected by affordability issues.
- Analyst ratings: 12 buys, 6 holds, and 2 sells.
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Toll Brothers on Smartkarma
Analyst coverage of Toll Brothers on Smartkarma reveals insights from Baptista Research on the luxury homebuilder’s performance. In their report titled “Toll Brothers: Navigating Interest Rate Changes & Housing Demand While Executing Community Expansion!”, Baptista Research highlights the company’s optimistic third-quarter results for fiscal year 2025. Toll Brothers delivered 2,959 homes, resulting in record third-quarter home sale revenues of $2.9 billion, with an average home price of $974,000. The analysis suggests Toll Brothers‘ focus on maintaining high margins over increasing sales pace as a strategic move in the luxury home building market.
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
Analysts on Smartkarma have given Toll Brothers a mixed outlook based on the Smart Scores. With a strong momentum score of 5, the company seems to be experiencing positive market trends. Additionally, the company has solid value and growth scores of 4, indicating a favorable position in terms of its financial health and potential for expansion. However, the lower dividend score of 2 suggests that investors may not see significant returns in the form of dividends from Toll Brothers.
Toll Brothers‘ resilience score of 3 reflects a moderate level of stability during challenging market conditions. Overall, while the company shows promising signs of growth and value, investors may need to closely monitor its dividend payouts and resilience to navigate potential risks. Despite the varying scores, Toll Brothers, Inc. remains a prominent player in the luxury homebuilding sector in the U.S., with diverse operations encompassing various aspects of the real estate industry.
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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