Why Is Toll Brothers Stock Trading Higher Wednesday?

Toll Brothers, Inc. TOL shares are trading higher in the premarket session on Wednesday.

Yesterday, the company reported first-quarter 2024 earnings per share of $2.25, beating the analyst consensus of $1.78.

Quarterly revenues of $1.948 billion beat the street view of $1.859 billion. Net signed contract value was $2.06 billion, up 42% year over year. Contracted homes were 2,042, up 40% from the prior-year quarter.

Backlog value was $7.08 billion at first quarter end, down 18% year over year. Homes in backlog were 6,693, down 13% from the year-ago period.

Home sales gross margin was 27.6% in the quarter under review, expanding from 25.6% year over year.

Douglas C. Yearley, Jr., chairman and chief executive officer, stated: “Based on our first quarter results, and with a strong start to the spring selling season, we are raising our full year guidance across all key metrics.”

Outlook: Toll Brothers raises FY24 earnings per share forecast from $12.00-$12.50 to $13.25-$13.75 versus the $12.23 estimate.

“At the end of our first quarter we owned or controlled approximately 70,400 lots, providing us with sufficient land to increase community count over the next several years,” Yearley added.

Price Action: TOL shares are trading higher by 3.09% to $106.75 premarket on the last check Wednesday.