Homebuilding company Toll Brothers (NYSE:TOL) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
Toll Brothers beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $2.73 billion, up 1.5% year on year. It was a very strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations.
Is Toll Brothers a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Toll Brothers’s revenue to grow 5% year on year to $3.17 billion, a reversal from the 18.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.34 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Toll Brothers has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8.8% on average.
Looking at Toll Brothers’s peers in the home builders segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Skyline Champion delivered year-on-year revenue growth of 32.9%, meeting analysts’ expectations, and Tri Pointe Homes reported revenues up 36.5%, topping estimates by 8.7%. Skyline Champion traded down 1.7% following the results while Tri Pointe Homes was also down 5.2%.
Read our full analysis of Skyline Champion’s results here and Tri Pointe Homes’s results here.
Investors in the home builders segment have had steady hands going into earnings, with share prices flat over the last month. Toll Brothers is down 1.5% during the same time and is heading into earnings with an average analyst price target of $159.12 (compared to the current share price of $155.00).
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