Toll Brothers TodayTOLToll Brothers$142.45 +1.42 (+1.01%) 52-Week Range$68.08▼$146.75Dividend Yield0.65%P/E Ratio9.73Price Target$132.19Add to WatchlistToll Brothers NYSE: TOL is one of the largest home-building companies in the United States. In 2023, the company's revenue was nearly $10 billion, putting it in fourth place behind giants like Lennar Corp NYSE: LEN and  D.R. Horton NYSE: DHI.Shares have performed well in 2024, providing a total return of 38%, significantly outpacing the market and its indust ...

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Toll Brothers, Inc. (TOL) shares gained 0.7% in the after-hours trading session on Aug 20, after it reported impressive third-quarter fiscal 2024 (ended Jul 31, 2024) results. Its earnings and revenues surpassed the Zacks Consensus Estimate.However, on a year-over-year basis, earnings declined despite revenue growth.Nonetheless, the company witnessed solid deposit and traffic activity through the first three weeks of August. TOL remains optimistic for the future as demand continues to be solid through the e ...

Financial Data and Key Metrics Changes - The company delivered 2,814 homes at an average price of $968,000, generating record third-quarter home sale revenues of $2.72 billion, an increase of 2% year-over-year [4][15] - Adjusted gross margin was 28.8%, exceeding guidance by 110 basis points, while SG&A expense was 9.0% of home sale revenues, 20 basis points better than guidance [4][18] - Earnings per diluted share were $3.60, significantly above previous guidance [15][22] Business Line Data and Key Metrics Changes - The company signed 2,490 net contracts for $2.4 billion, up approximately 11% in both units and dollars compared to the previous year [4][16] - Spec homes represented approximately 54% of orders and 49% of deliveries in the third quarter, with a target of about 50% of the business as spec homes [8][10] Market Data and Key Metrics Changes - Demand was uneven throughout the quarter, with strong performance in July and continued strength into August [5] - Key markets showing strength included New Jersey, Pennsylvania, Metro D.C., South Carolina, Atlanta, Boise, Las Vegas, and all of California [5][6] Company Strategy and Development Direction - The company is focusing on widening geographies and price points to include more affordable homes, which has helped meet demand and improve efficiency [8] - The strategy includes maintaining a balance of 50% spec and 50% build-to-order homes, with a long-term gross margin target of 27% to 28% [24][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand trends due to favorable demographics and a balanced supply-demand situation in the housing market [5][7] - The company expects to deliver between 10,650 and 10,750 homes for the full year, raising guidance based on strong third-quarter results [16][22] Other Important Information - The company plans to continue growing community count, targeting 410 communities by fiscal year-end, representing an 11% growth [20][21] - The net debt-to-capital ratio was 19.6%, with $893 million in cash and equivalents, providing ample flexibility for growth and capital return [21] Q&A Session Summary Question: Can you elaborate on the greater efficiency in homebuilding operations and the sustainability of the operating margin? - Management believes the operating margin is sustainable, targeting a long-term gross margin in the 27% to 28% range [24] Question: What was the actual number of specs in the quarter? - The company had around 3,400 specs, with approximately 750 at completion or beyond [26] Question: How confident is the company that improved cycle times and increased spec levels can drive delivery growth into 2025? - Management is very confident that improved cycle times and the spec strategy will continue to drive delivery growth [34] Question: What is driving the expected decline in fourth-quarter gross margin? - The decline is attributed to a mix of lower high-margin homes delivering in the fourth quarter compared to the third quarter [36] Question: Has the company seen any ability to dial back incentives or raise prices? - Management noted that while pricing was flat, they are seeing improved traffic and potential pricing power as rates decline [40][42] Question: How does the company view the balance between deliveries and orders going forward? - Management anticipates that deliveries will reach equilibrium with orders soon, but does not expect spec to outgrow the build-to-order business in terms of deliveries [76][78]

For the quarter ended July 2024, Toll Brothers (TOL) reported revenue of $2.73 billion, up 1.5% over the same period last year. EPS came in at $3.60, compared to $3.73 in the year-ago quarter.The reported revenue represents a surprise of +1.17% over the Zacks Consensus Estimate of $2.7 billion. With the consensus EPS estimate being $3.28, the EPS surprise was +9.76%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ne ...

Tuesday, August 20th, 2024It was bound to happen sooner or later. The S&P 500 just ended its eight-session winning streak today, and it did so with a mere whimper: -0.20% on the day. The start of August began the rollercoaster ride down for the major indexes, and the S&P took out that level last week. Due to a lack of wind in our sails at present, it’s not really a surprise to see a flattish trading day.The Dow was very similar, down -71 points or -0.15% on the session, and the Nasdaq was a tad lower, -36 p ...

Toll Brothers (TOL) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.28 per share. This compares to earnings of $3.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.76%. A quarter ago, it was expected that this home builder would post earnings of $4.13 per share when it actually produced earnings of $3.38, delivering a surprise of -18.16%.Over the last four quarters, the compan ...

EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACT: Gregg Ziegler (215) 478-3820 August 20, 2024 gziegler@tollbrothers.com Toll Brothers Reports FY 2024 3rd Quarter Results FORT WASHINGTON, PA, August 20, 2024 -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation's leading builder of luxury homes, today announced results for its third quarter ended July 31, 2024. FY 2024's Third Quarter Financial Highlights (Compared to FY 2023's Third Quarter): Douglas C. Yearley, Jr., chairman and chief executive offic ...

FORT WASHINGTON, Pa., Aug. 20, 2024 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, today announced results for its third quarter ended July 31, 2024. FY 2024’s Third Quarter Financial Highlights (Compared to FY 2023’s Third Quarter): Net income and earnings per share were $374.6 million and $3.60 per diluted share, compared to net income of $414.8 million and $3.73 per diluted share in FY 2023’s third quarter.Pre-tax income was $503.6 mil ...

BABCOCK RANCH, Fla., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, is now offering quick move-in homes in Regency at Babcock Ranch, an active-adult 55+ community in southwest Florida offering three distinct collections of low-maintenance homes in Charlotte County. The community features luxury living and resort-style amenities in a serene setting. Toll Brothers offers homes available for buyers on every timeline, including the option to selec ...