Toll Brothers (TOL) Misses Q4 Earnings Estimates

Core Insights - Toll Brothers reported quarterly earnings of $4.58 per share, missing the Zacks Consensus Estimate of $4.87 per share, and showing a slight decrease from $4.63 per share a year ago, resulting in an earnings surprise of -5.95% [1] - The company posted revenues of $3.42 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.97% and showing an increase from $3.33 billion year-over-year [2] - The stock has underperformed the S&P 500, gaining about 10.3% since the beginning of the year compared to the S&P 500's gain of 16.8% [3] Earnings Outlook - The earnings outlook for Toll Brothers is uncertain, with current consensus EPS estimates at $1.79 on $1.86 billion in revenues for the coming quarter and $13.85 on $10.86 billion in revenues for the current fiscal year [7] - The estimate revisions trend for Toll Brothers was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Building Products - Home Builders industry is currently in the bottom 13% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]