Toll Brothers, Inc. TOL shares are moving higher on Wednesday after company reported better-than-expected third quarter earnings and issued EPS guidance for the 2024 fiscal year above estimates.
The Details: Toll reported earnings on Tuesday after the market closed. The company reported adjusted EPS of $3.60, beating analysts estimate of $3.31 and sales of $2.73 billion, beating analysts estimate of $2.71 billion.
Toll reported third-quarter home sales revenue of $2.72 billion, a 2% increase from the same period last year. Toll delivered 2,814 homes at an average price of $960,000 throughout the quarter. The adjusted gross margin for home sales was 28.8%, compared to 29.3% in the 2023 fiscal year third quarter.
“Net signed contracts were up year-over-year approximately 11% in both units and dollars, with July being our strongest month in the quarter. We are also encouraged by our solid deposit and traffic activity through the first three weeks of August,” said CEO and chairman of Toll Brothers Douglas C. Yearley.
“With mortgage rates at their lowest point in a year and trending lower, favorable demographics, and continued imbalance in the supply and demand of homes for sale, we are optimistic that demand will remain solid through the end of fiscal 2024 and into 2025.”
In addition, the company issued guidance for the 2024 fiscal year. Toll expects EPS between $14.50 and $14.75 versus analysts estimate of $14.20. The company also projects between 10,650 and 10,750 home deliveries for the fiscal year, and between 3,275 and 3,375 deliveries for the fourth quarter.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Wedbush analyst Jay McCanless reiterated a Neutral rating on Toll Brothers and maintained a $120 price target.
- Keefe, Bruyette & Woods analyst Jade Rahmani maintained a Outperfom rating on Toll Brothers and maintained a $142 price target.
Related Link: Target Q2 Earnings: Revenue And Profit Beat, Digital Sales Boost, Annual Profit Outlook Hiked
TOL Price Action: Toll Brothers shares are trading 5.41% higher at $140.75 at the time of publication, according to data from Benzinga Pro.
Image: Photo by Sundry Photography via Shutterstock
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