Homebuilding company Toll Brothers (NYSE:TOL) will be reporting results tomorrow afternoon. Here’s what investors should know.
Toll Brothers beat analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $3.33 billion, up 10.4% year on year. It was an exceptional quarter for the company, with a decent beat of analysts’ EPS estimates.
Is Toll Brothers a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Toll Brothers’s revenue to decline 1.8% year on year to $1.91 billion, a reversal from the 9.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Toll Brothers has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 7.5% on average.
Looking at Toll Brothers’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Champion Homes delivered year-on-year revenue growth of 15.3%, beating analysts’ expectations by 9.2%, and Taylor Morrison Home reported revenues up 16.7%, topping estimates by 9.5%. Champion Homes traded up 13.5% following the results while Taylor Morrison Home was also up 2.6%.
Read our full analysis of Champion Homes’s results here and Taylor Morrison Home’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the home builders stocks have shown solid performance, the group has generally underperformed, with share prices down 4.6% on average over the last month. Toll Brothers is down 8.1% during the same time and is heading into earnings with an average analyst price target of $155.77 (compared to the current share price of $124.56).
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