Toll Brothers(US:TOL) 247Wallst·2025-12-09 12:46Core Viewpoint - Toll Brothers reported a fourth-quarter earnings beat but faced investor disappointment due to modest revenue growth and market expectations [1][2][5]. Financial Performance - The company posted EPS of $4.63, exceeding the consensus estimate of $4.38 by $0.25, representing a 5.8% surprise and marking the sixth consecutive quarter of exceeding analyst expectations [2][5]. - Revenue for the quarter was $3.26 billion, slightly above the estimate of $3.20 billion by 1.8%, but this figure declined 2.2% year over year from $3.33 billion in the previous fourth quarter [2][6]. Market Reaction - Despite the earnings beat, shares opened down approximately 4.3% to $130.38, indicating investor disappointment [1][5]. - The stock broke below its 50-day moving average of $135.01 but remained above the 200-day moving average of $120.27, showing volatility in after-hours trading [8]. Analyst Sentiment - Analyst sentiment remains moderately bullish, with ten analysts maintaining Buy or Strong Buy ratings compared to six Hold or Sell ratings, and an average price target of $152.40, suggesting a potential upside of 16.9% from current levels [9]. Future Outlook - The focus now shifts to forward guidance and order trends, which were not included in the preliminary data. The stock trades at a forward P/E ratio of 10.08, indicating a reasonable valuation for a profitable homebuilder [10]. - Investors are looking for evidence of revenue growth reacceleration to justify the current valuation [10][11].