Toll Brothers Reports Q2 Earnings: What Key Metrics Have to Say

Toll Brothers TOL reported $2.84 billion in revenue for the quarter ended April 2024, representing a year-over-year increase of 13.2%. EPS of $3.38 for the same period compares to $2.85 a year ago.

The reported revenue represents a surprise of +12.57% over the Zacks Consensus Estimate of $2.52 billion. With the consensus EPS estimate being $4.13, the EPS surprise was -18.16%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Toll Brothers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Closed/Delivered - Units: 2,641 versus 2,461 estimated by five analysts on average.
• Backlog - Units: 7,093 versus the five-analyst average estimate of 7,080.
• Average delivered price (Total Average Price Per Unit): $1,002.30 compared to the $1,003.98 average estimate based on five analysts.
• Net contracts - Units: 3,041 versus 2,858 estimated by four analysts on average.
• Average Backlog Price: $1,040.20 versus $1,033.84 estimated by three analysts on average.
• Number of Selling Communities: 386 versus 385 estimated by three analysts on average.
• Backlog - Value: $7.38 billion versus the two-analyst average estimate of $7.18 billion.
• Revenues- Home Sales: $2.65 billion versus $2.43 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +6.3% change.
• Revenues- Land sales: $190.47 million versus the three-analyst average estimate of $82.17 million. The reported number represents a year-over-year change of +1028.3%.
• Gross Margin- Home sales: $683.74 million versus the four-analyst average estimate of $642.24 million.
• Gross Margin- Land sales and other: $177.49 million versus the three-analyst average estimate of $116.11 million.

Shares of Toll Brothers have returned +15.2% over the past month versus the Zacks S&P 500 composite's +7.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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