Toll Brothers (NYSE:TOL) is set to give its latest quarterly earnings report on Monday, 2024-12-09. Here's what investors need to know before the announcement.
Analysts estimate that Toll Brothers will report an earnings per share (EPS) of $4.33.
Toll Brothers bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings History Snapshot
Last quarter the company beat EPS by $0.29, which was followed by a 5.62% increase in the share price the next day.
Here's a look at Toll Brothers's past performance and the resulting price change:
| Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|
| EPS Estimate | 3.31 | 4.14 | 1.78 | 3.72 |
| EPS Actual | 3.60 | 3.38 | 2.25 | 4.11 |
| Price Change % | 6.0% | -8.0% | 4.0% | 2.0% |
Stock Performance
Shares of Toll Brothers were trading at $154.14 as of December 04. Over the last 52-week period, shares are up 65.87%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts on Toll Brothers
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Toll Brothers.
Toll Brothers has received a total of 5 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $177.6, the consensus suggests a potential 15.22% upside.
Peer Ratings Overview
The analysis below examines the analyst ratings and average 1-year price targets of TopBuild, Taylor Morrison Home and Meritage Homes, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- The consensus outlook from analysts is an Buy trajectory for TopBuild, with an average 1-year price target of $474.75, indicating a potential 208.0% upside.
- The consensus outlook from analysts is an Outperform trajectory for Taylor Morrison Home, with an average 1-year price target of $78.67, indicating a potential 48.96% downside.
- Analysts currently favor an Neutral trajectory for Meritage Homes, with an average 1-year price target of $198.0, suggesting a potential 28.45% upside.
Peers Comparative Analysis Summary
The peer analysis summary outlines pivotal metrics for TopBuild, Taylor Morrison Home and Meritage Homes, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Toll Brothers | Outperform | 1.50% | $742.00M | 5.09% |
| TopBuild | Buy | 3.56% | $421.81M | 7.56% |
| Taylor Morrison Home | Outperform | 26.58% | $531.07M | 4.48% |
| Meritage Homes | Neutral | -1.63% | $396.35M | 3.95% |
Key Takeaway:
Toll Brothers ranks highest in gross profit and return on equity among its peers. It is in the middle for consensus rating and revenue growth.
Get to Know Toll Brothers Better
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-home buyers. Traditional homebuilding operations represent most of company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
Toll Brothers: Delving into Financials
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Positive Revenue Trend: Examining Toll Brothers's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.5% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Toll Brothers's net margin excels beyond industry benchmarks, reaching 13.73%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.09%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Toll Brothers's ROA stands out, surpassing industry averages. With an impressive ROA of 2.82%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Toll Brothers's debt-to-equity ratio is below the industry average. With a ratio of 0.4, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for Toll Brothers visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
