Luxury homebuilder Toll Brothers Q3 adjusted EPS beats estimates
Overview
Toll Brothers Inc fiscal Q3 net income at $369.6 mln, adjusted EPS beats estimates
Home sales revenue for fiscal Q3 rises 6% yr/yr, no analyst estimate provided
Net signed contract value flat at $2.41 bln, contracted homes down 4%
Outlook
Toll Brothers sees Q4 deliveries of 3,350 units
Company expects FY 2025 deliveries of 11,200 units
Toll Brothers forecasts Q4 average delivered price per home $970,000-$980,000
Company projects FY 2025 adjusted home sales gross margin of 27.25%
Result Drivers
HOME SALES REVENUE - Increased 6% yr/yr driven by higher average home prices despite a decline in contracted homes
ADJUSTED GROSS MARGIN - Achieved 27.5%, exceeding guidance by 25 basis points, reflecting strategic pricing and operational efficiency
BACKLOG DECLINE - Backlog value and units decreased, indicating potential future challenges in maintaining sales momentum
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Home Sales Revenues |
| $2.88 bln |
|
Q3 Adjusted EPS | Beat | $3.73 | $3.6 (15 Analysts) |
Q3 EPS |
| $3.73 |
|
Q3 Home Sales Adjusted Gross Margin |
| 27.5% |
|
Q3 Operating Income |
| $487.70 mln |
|
Q3 Pretax Profit |
| $499.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy"
Wall Street's median 12-month price target for Toll Brothers Inc is $143.00, about 8.3% above its August 18 closing price of $131.18
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nGNX7ZDlPJ
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