Toll Brothers(TOL)
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Toll Brothers Before Q3 Earnings: Buy, Sell or Hold the Stock?
ZACKS· 2025-08-18 18:16
Core Insights - Toll Brothers, Inc. is scheduled to report its third-quarter fiscal 2025 results on August 19, 2025, with a focus on maintaining strong margins and steady deliveries in a challenging housing market [1] Financial Performance - The company achieved a record fiscal second quarter with earnings per share of $3.50, exceeding estimates by 22.4% and showing a year-over-year increase of 3.6% [2] - Revenue for the second quarter was $2.74 billion, surpassing consensus by 9.5% and reflecting a 2.3% year-over-year growth [2] - Home deliveries totaled 2,899 units at an average price of $934,000, with a gross margin of 27.5% and SG&A expenses at 9.5% of sales, both exceeding guidance [2] - Despite a 13% decline in net signed contracts due to economic uncertainty, the backlog remains strong at $6.84 billion [2] Future Estimates - The Zacks Consensus Estimate for the fiscal third-quarter earnings per share is $3.59, indicating a slight decline from the previous year's EPS of $3.60 [4] - Revenue for the third quarter is estimated at $2.85 billion, suggesting a 4.6% year-over-year increase [4] - For fiscal 2025, revenues are expected to increase by 0.8%, while the bottom line is projected to decline by 7.1% [5] Guidance for Q3 2025 - Toll Brothers anticipates home deliveries between 2,800 and 3,000 units at an average selling price of $965,000 to $985,000 [7] - The company expects adjusted gross margin to be 27.25%, slightly below the previous year's margin of 28.8% [8] - SG&A expenses are projected to be 9.2% of home sales revenue, up from 9% in the same quarter last year [9] Market Position and Customer Base - The company serves a financially resilient customer base, with over 70% of its business targeting move-up and empty-nester segments [10] - More than 24% of buyers in the second quarter paid in cash, with an average loan-to-value ratio of 70% [10] - Toll Brothers operates in over 60 markets across 24 states, offering a diverse range of homes priced from $300,000 to over $5 million [11] Challenges and Risks - The company faces challenges such as declining consumer confidence, with net signed contracts down significantly year-over-year [12] - Increased incentives to support sales may pressure margins, with current incentives at about 7% of the average selling price [12] - The need to sell and close 1,900 spec homes in the second half of the year poses a risk to meeting delivery guidance [12] Stock Performance and Valuation - Toll Brothers stock has risen 23% over the past three months, outperforming some peers in the homebuilding industry [16] - The stock is currently trading at a discount to its industry in terms of forward price/earnings ratios [20] - The company holds a Zacks Rank of 3, indicating a hold recommendation, with limited near-term upside due to current earnings estimates [15][23]
Toll Brothers Q3 Preview: Will Warren Buffett's Homebuilder Bet Benefit Entire Sector?
Benzinga· 2025-08-18 16:30
Core Viewpoint - Toll Brothers is expected to demonstrate strength in the homebuilder sector with its upcoming third-quarter financial results, showing potential growth in revenue and earnings per share compared to the previous year [1][2]. Earnings Estimates - Analysts predict Toll Brothers will report third-quarter revenue of $2.85 billion, an increase from $2.73 billion in the same quarter last year [1]. - Expected earnings per share for the third quarter are $3.60, consistent with the earnings per share reported in the third quarter of the previous year [2]. Recent Performance - The company has consistently outperformed analyst estimates, beating expectations in nine of the last ten quarters overall [2]. - In the second quarter, Toll Brothers exceeded analyst estimates for earnings per share [2]. Market Context - The housing sector remains a focal point for investors, with new home sales declining recently [3]. - Anticipation of rate cuts later this year and pent-up demand for home purchases is expected to influence the market positively in the second half of the year or into 2026 [3]. Influential Investors - Warren Buffett's Berkshire Hathaway has made new investments in the homebuilder sector, which may positively impact the entire industry, even though Buffett did not directly invest in Toll Brothers [4][5]. - Berkshire Hathaway increased its stake in Lennar Corporation Class B shares by 19%, indicating confidence in the homebuilder sector [4]. Key Metrics to Watch - Investors and analysts will focus on key metrics such as home sales revenue, delivered homes, net signed contract value, and contracted homes in Toll Brothers' upcoming report [5]. Backlog Information - Toll Brothers reported a backlog value of $6.84 billion at the end of the second quarter, with 6,063 homes in backlog, reflecting a year-over-year decrease of 7% in value and 15% in the number of homes [6]. Stock Performance - Toll Brothers stock has increased by 0.8% to $131.59, with a year-to-date increase of 4.6% in 2025, and has a 52-week trading range of $86.67 to $169.52 [6].
Seven New Toll Brothers Model Homes Open at The Station in Sunnyvale, California
Globenewswire· 2025-08-15 17:43
Core Insights - Toll Brothers, Inc. announced the grand opening of seven model homes at The Station, a new luxury home community in Sunnyvale, California, featuring townhomes and condominiums near major tech employers [1][4] Group 1: Community Features - The Station offers two collections of luxury homes: Vantage at The Station and Terraces at The Station, with sizes ranging from 962 to over 2,387 square feet, accommodating up to 4 bedrooms and 3 baths [4] - Homes in The Station are priced from the upper $900,000s, indicating a premium market positioning [4] - The community includes amenities such as a clubhouse, children's playground, dog park, walking paths, and expansive lawns, enhancing the living experience [6] Group 2: Customer Experience - Toll Brothers provides a state-of-the-art Design Studio for customers to personalize their homes with a wide array of selections, supported by professional Design Consultants [5] - Move-in ready homes with Designer Appointed Features are available, allowing buyers to move in later this summer or fall [5] Group 3: Educational Opportunities - Residents have access to highly ranked local schools, including Ellis Elementary, Sunnyvale Middle School, and Fremont High School, as well as sought-after private schools [6] Group 4: Company Background - Toll Brothers is a Fortune 500 Company, recognized as the nation's leading builder of luxury homes, with operations in over 60 markets across 24 states [9] - The company has received multiple accolades, including being named one of Fortune magazine's World's Most Admired Companies for over 10 years [10]
Toll Brothers Announces Breton Hill Community Coming Soon to Bucks County, Pennsylvania
Globenewswire· 2025-08-14 20:24
Core Insights - Toll Brothers, Inc. is launching a new luxury home community named Breton Hill in Warwick Township, Pennsylvania, expected to open for sale in late 2025 [1][2][4] Company Overview - Toll Brothers is recognized as the nation's leading builder of luxury homes and is a Fortune 500 Company, founded in 1967 and publicly traded since 1986 [8][9] - The company operates in over 60 markets across 24 states and the District of Columbia, offering a variety of housing options for different buyer segments [8] Community Details - Breton Hill will consist of only 13 single-family homes, with sizes ranging from 3,677 to over 5,210 square feet, featuring 4 to 6 bedrooms and 3.5 to 6.5 bathrooms [2][4] - Home sites will range from half an acre to one acre, with pricing anticipated to start at $1.6 million [2][4] - The community is located near shopping, dining, and major commuter routes, enhancing its appeal [6] Design and Personalization - The homes will feature modern, open-concept designs with options for personalization through the Toll Brothers Design Studio [2][5] - Customers will have access to a state-of-the-art Design Studio to select various home features with professional assistance [5] Market Position and Recognition - Toll Brothers has been recognized as one of Fortune magazine's World's Most Admired Companies for over 10 years and has received multiple awards for its excellence in home building [9]
Toll Brothers Apartment Living® and Harris Realty Company LLC Announce the Opening of Piper, a New Luxury Apartment Community in Norwalk, Connecticut
Globenewswire· 2025-08-14 17:59
Core Insights - Toll Brothers Apartment Living has opened a new luxury apartment community named Piper in Norwalk, Connecticut, featuring 393 apartment homes with a mix of studio, one-bedroom, two-bedroom, and three-bedroom units [1][5] Company Overview - Toll Brothers Apartment Living is the rental subsidiary of Toll Brothers, Inc., recognized as the nation's leading builder of luxury homes, and has been named to the National Multifamily Housing Council's Top 25 Largest Developers list for five consecutive years [6][8] - The company has completed over 10,000 units nationally and has more than 18,000 units currently in production [6] Product Offering - Piper features modern design elements and luxury amenities, including quartz countertops, stainless steel appliances, oversized closets, and smart home technology [2] - The community offers various amenities such as a resort-style courtyard with a pool, fitness center, rooftop deck, coworking lounge, and pet spa [3][4] Location and Accessibility - Piper is strategically located along the West Avenue corridor, providing residents with easy access to dining, shopping, cultural attractions, and regional transit [4] - The community is in proximity to the South Norwalk Metro-North station and I-95, facilitating connectivity to Stamford, New Haven, and New York City [4]
Toll Brothers Announces Opening of New Model Homes at Carrara Estates in Eagle, Idaho
Globenewswire· 2025-08-14 17:46
EAGLE, Idaho, Aug. 14, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced the highly anticipated opening of its model homes at Carrara Estates, a new luxury home community within walking distance of downtown Eagle, Idaho. The Sales Center and professionally decorated model homes are now open for tours at 667 East Peak Bello St. in Eagle. The luxury single-family homes at Carrara Estates are situated on expansive estate-sized home sites, inc ...
Insights Into Toll Brothers (TOL) Q3: Wall Street Projections for Key Metrics
ZACKS· 2025-08-14 14:16
Core Viewpoint - The upcoming earnings report for Toll Brothers is anticipated to show a slight decline in earnings per share while revenues are expected to increase year over year [1]. Financial Performance - Quarterly earnings are projected at $3.59 per share, reflecting a decrease of 0.3% compared to the previous year [1]. - Revenue estimates stand at $2.85 billion, indicating a year-over-year growth of 4.6% [1]. Analyst Estimates - Analysts predict 'Revenues- Home Sales' to reach $2.84 billion, a year-over-year increase of 4.4% [4]. - 'Revenues- Land Sales' are expected to be $16.34 million, showing a significant increase of 370.6% from the prior-year quarter [4]. - The estimated 'Closed/Delivered - Units' is 2,919, up from 2,814 in the same quarter last year [4]. Backlog and Pricing Metrics - 'Backlog - Units' is estimated at 5,795, down from 6,769 year-over-year [5]. - The 'Average delivered price (Total Average Price Per Unit)' is forecasted to be $973.32, compared to $968.20 in the same quarter last year [5]. - 'Net contracts - Units' are expected to be 2,651, an increase from 2,490 year-over-year [5]. Community and Backlog Insights - The 'Number of Selling Communities' is projected at 430, up from 404 in the same quarter last year [6]. - The 'Average Backlog Price' is expected to reach $1,125.97, compared to $1,044.00 in the previous year [6]. - 'Backlog - Value' is anticipated to be $6.44 billion, down from $7.07 billion year-over-year [7]. Gross Margin and Market Performance - The consensus estimate for 'Gross Margin- Home Sales' is $734.13 million, compared to $747.31 million in the same quarter last year [7]. - Over the past month, Toll Brothers shares have increased by 14.2%, outperforming the Zacks S&P 500 composite's 3.5% change [7].
Toll Brothers Announces New Luxury Home Community Coming Soon to Briggs Ranch in San Antonio, Texas
Globenewswire· 2025-08-13 19:16
Core Insights - Toll Brothers, Inc. is launching a new luxury home community named Toll Brothers at Briggs Ranch in San Antonio, Texas, with sales expected to begin in fall 2025 [1][2] Group 1: Community Details - The new community will feature modern single-family homes on 50-foot-wide lots, with floor plans ranging from 1,913 to 3,116 square feet [2][4] - Home designs will include options for 3 to 5 bedrooms and 2 to 4.5 baths, with pricing anticipated to start from the mid-$400,000s [2][4] - The community will offer various amenities such as parks, walking trails, and an amenity center, providing a tranquil living environment [4] Group 2: Company Background - Toll Brothers, Inc. is recognized as the nation's leading builder of luxury homes and has been in operation for 58 years, becoming a public company in 1986 [6][8] - The company operates in over 60 markets across 24 states and offers a range of services including architectural, engineering, and mortgage operations [7] - Toll Brothers has received multiple accolades, including being named one of Fortune magazine's World's Most Admired Companies for over 10 years [8]
Toll Brothers Announces Final Opportunity to Own a New Luxury Home at Parklynn Hills Community in Fountain Inn, South Carolina
GlobeNewswire· 2025-08-13 18:12
Core Insights - Toll Brothers, Inc. announces the final opportunity to purchase homes in the Parklynn Hills community, with only three homes remaining for sale [1][2] Group 1: Company Overview - Toll Brothers, Inc. is the nation's leading builder of luxury homes, founded in 1967 and publicly traded since 1986 [7] - The company operates in over 60 markets across 24 states and the District of Columbia, offering a variety of home designs for different buyer segments [7] - Toll Brothers has received multiple accolades, including being named one of Fortune magazine's World's Most Admired Companies for over 10 years [8] Group 2: Community Features - Parklynn Hills is located between Simpsonville and Fountain Inn, designed for luxury living with one- and two-story home options [2] - Homes in the community are priced from the upper $500,000s and include features such as 4 to 5 bedrooms and 3.5 to 4.5 baths [2] - The community offers easy access to top-rated schools and recreational amenities, enhancing its appeal to potential buyers [4] Group 3: Sales Information - Quick move-in homes are available for delivery as early as fall, with one move-in ready home currently available [2] - Interested home shoppers can visit the offsite Sales Center in Simpsonville for more information [5]
Toll Brothers Opens Enclave at Sprain Brook Luxury Townhome Community in Yonkers, New York
Globenewswire· 2025-08-13 14:15
YONKERS, N.Y., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced its newest townhome community, Enclave at Sprain Brook, is now open for sale in Yonkers, New York. Situated just 17 miles from Manhattan, this intimate community of only 28 homes offers a suburban lifestyle with easy access to New York City. Located off Sprain Brook Parkway and minutes from the Yonkers Metro–North Railroad Station, Enclave at Sprain Brook features tw ...