Latest news with #TollBrothersInc
Yahoo
21-05-2025
- Business
- Yahoo
Toll Brothers Q2 Earnings & Revenues Beat Estimates, Home Sales Up Y/Y
Toll Brothers, Inc. TOL reported second-quarter fiscal 2025 (ended April 30) results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate. On a year-over-year basis, the bottom line grew while the top line quarterly performance reflects soft contributions from the Land sales and other segment, partially offset by growth in home sales revenues. The housing market uncertainties persist and are expected to elevate if the new tax regime is fully implemented, mainly hitting the homebuilding cost structure. Nonetheless, the company is optimistic about its long-term growth trend, backed by the shortage of housing and the favorable TOL believes that with its broadly diversified luxury product offerings, balanced portfolio of build-to-order and spec homes, and its strategy of prioritizing sales price and margin over pace, will help it navigate through the choppy market of this leading luxury homebuilder rose 5.1% during yesterday's after-hours trading session following the earnings release. The investors' sentiments are likely to have been boosted by the 9% hike in the company's quarterly dividend to 25 cents per share ($1 annually). The company reported adjusted earnings per share (EPS) of $3.50, which surpassed the Zacks Consensus Estimate of $2.86 by 22.4% and grew 3.6% from the year-ago period. Toll Brothers Inc. price-consensus-eps-surprise-chart | Toll Brothers Inc. Quote Total revenues (including Home sales and Land sales and other) of $2.74 billion also topped the consensus mark of $2.5 billion by 9.5% but decreased 3.5% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The company's total home sales revenues were up 2% (above our projection of a 5% year-over-year decline) from the prior-year quarter to $2.71 billion. Homes delivered were up 10% (above our expectation of 0.1% growth year over year) from the year-ago quarter to 2,899 units. The average selling price (ASP) of homes delivered was $933,600 for the quarter, down 6.9% from the year-ago level of $1,002,300. Our model had expected ASP to be down 5.1% year over year to $951, contracts during the quarter were 2,650 units, down year over year from 3,041 units. The value of net signed contracts was $2.6 billion, reflecting a decline of 11.6% year over year. We had projected net-signed contracts to be up 3.8% in units and 4.4% in value for the the fiscal second-quarter end, Toll Brothers had a backlog of 6,063 homes, representing a year-over-year decrease of 14.5%. Potential revenues from backlog declined 7.3% year over year to $6.84 billion. The average price of homes in the backlog was $1,128,100, up from $1,040,200 a year cancellation rate (as a percentage of signed contracts) for the reported quarter was 6.2%, up from 5.7% in the prior-year adjusted home sales gross margin was 27.5%, which contracted 70 basis points (bps) for the quarter. Selling, general and administrative (SG&A) expenses, as a percentage of home sales revenues, were 9.5%, up 50 bps from the year-ago quarter. The company had cash and cash equivalents of $686.5 million at the fiscal second-quarter end compared with $1.3 billion at the fiscal 2024-end. The debt-to-capital ratio improved to 26.1% from 27% at the end of fiscal 2024. The net debt-to-capital ratio was 19.8% compared with 15.2% at the fiscal 2024-end. At the end of the fiscal second quarter, the company had $2.19 billion available under its $2.35 billion revolving credit facility, set to mature in February the first six months of fiscal 2025, the company bought back approximately 1.8 million shares for a total of $201.1 the end of the fiscal second quarter, TOL controlled about 78,600 lots, 58% of which were under control rather than owned outright, ensuring sufficient land for future expansion. Toll Brothers expects home deliveries of 2,800-3,000 units (compared with 2,814 units delivered in the prior-year quarter) at an average price of $965,000-$985,000 (compared with $968,200 in the year-ago quarter).Adjusted home sales gross margin is expected to be 27.25%, implying a decline from 28.8% in the year-ago period. SG&A expenses are estimated to be 9.2% of home sales revenues, indicating a rise from 9% in the year-ago period. The company expects the effective tax rate to be 26%. For fiscal 2025, home deliveries are anticipated to be in the range of 11,200-11,600 units. The estimated range reflects growth from the fiscal 2024 level of 10,813. It expects the period-end community count to be average price of delivered homes is expected to be $945,000-$965,000, indicating a decline from $976,900 in fiscal Brothers expects an adjusted home sales gross margin of 27.25%. This reflects a decline from 28.4% reported in fiscal expenses, as a percentage of home sales revenues, are now projected to be 9.4-9.5%, still an increase from 9.3% reported in fiscal 2024. The company expects the effective tax rate to be 25.5%. Toll Brothers currently carries a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Homes Corporation MTH reported first-quarter 2025 results, wherein earnings missed the Zacks Consensus Estimate, but total closing revenues topped the same. Revenues beat the consensus estimate for the tenth consecutive Homes kicked off 2025 on solid footing, selling nearly 3,900 homes in the first quarter, even as the housing market faced headwinds. With the strategic focus on affordability and a strong pipeline of move-in-ready homes, Meritage believes it is well-positioned to grow market share in the current environment. Under the Homebuilding umbrella, home closing revenues of $1.34 billion declined 8% from the prior-year quarter's level due to lower ASP. Land closing revenues, however, grew 569% to $15.4 million from a year Inc. PHM has reported better-than-expected first-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate. The company's performance continues to benefit from its diversified operations and strategic focus on balancing sales price and pace to maintain strong sale revenues decreased 1.8% year over year to $3.75 billion. Land sale and other revenues increased 41.2% to $52.6 million from a year ago. Home sales gross margin was down 210 basis points year over year to 27.5%. PulteGroup's backlog, which represents orders yet to be closed, was 11,335 units, down from 13,430 units a year Inc. NVR reported first-quarter 2025 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Homebuilding revenues increased year over year, while the bottom line declined from the prior-year quarter's the quarter, the Homebuilding segment reported a modest increase in settlements and settlement prices, while new orders and average sales prices declined. NVR's backlog weakened, and gross margins compressed due to higher lot costs and affordability pressures. On a unit basis, backlog at the end of March 31, 2025, decreased 9% from the prior-year quarter's figure to 10,165 homes and fell 7% on a dollar basis to $4.84 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PulteGroup, Inc. (PHM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Meritage Homes Corporation (MTH) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
20-05-2025
- Business
- San Francisco Chronicle
Toll Brothers: Fiscal Q2 Earnings Snapshot
FORT WASHINGTON, Pa. (AP) — FORT WASHINGTON, Pa. (AP) — Toll Brothers Inc. (TOL) on Tuesday reported fiscal second-quarter profit of $352.4 million. On a per-share basis, the Fort Washington, Pennsylvania-based company said it had profit of $3.50. The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.86 per share. The home builder posted revenue of $2.74 billion in the period, also surpassing Street forecasts. Six analysts surveyed by Zacks expected $2.5 billion. _____
Bloomberg
20-05-2025
- Business
- Bloomberg
Toll Maintains Home Sales Forecast as Luxury Demand Holds Up
Luxury builder Toll Brothers Inc. reaffirmed expectations for home sales in its full fiscal year, citing resilience among its affluent buyers.
Yahoo
20-02-2025
- Business
- Yahoo
Toll Brothers Inc (TOL) Q1 2025 Earnings Call Highlights: Strong Home Sales Revenue and ...
Home Sales Revenue: $1.84 billion from 1,991 homes delivered at an average price of $925,000. Adjusted Gross Margin: 26.9%, 65 basis points above guidance. SG&A Expense: 13.1% of home sales revenue, 40 basis points above guidance. Net Income: $177.7 million or $1.75 per share diluted. Net Contracts Signed: 2,307 contracts for $2.3 billion, up 13% in units and 12% in dollars year-over-year. Average Sales Price of Orders: Approximately $1 million, unchanged from the previous quarter. Spec Homes: Represented 55% of sales and 52% of deliveries, with 3,200 spec homes in inventory at quarter end. Community Count: Operating from 406 communities, targeting 8% to 10% growth to reach 440-450 communities by fiscal year end. Liquidity: Over $2.3 billion, including $575 million in cash and $1.8 billion in revolving credit facility availability. Net Debt to Capital Ratio: 21.1% at quarter end. Share Repurchases: Targeting $500 million for the full year. Warning! GuruFocus has detected 6 Warning Sign with LZB. Release Date: February 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Toll Brothers Inc (NYSE:TOL) reported first-quarter deliveries of 1,991 homes at an average price of $925,000, generating home sales revenues of $1.84 billion. The company achieved an adjusted gross margin of 26.9%, which was 65 basis points better than guidance. Net contracts signed in the first quarter were up 13% in units and 12% in dollars compared to the previous year. The company maintained a low contract cancellation rate of 2.4%, indicating strong buyer commitment. Toll Brothers Inc (NYSE:TOL) has a healthy balance sheet with increased liquidity, low net debt, and no significant debt maturities this fiscal year. Net income and earnings per share came in below expectations due to impairments and a delay in the sale of a stabilized apartment property. SG&A expenses as a percentage of home sales revenue were 13.1%, 40 basis points above guidance. The company experienced mixed results in the spring selling season, with affordability constraints and growing inventories pressuring sales in certain markets. There was a significant rise in inventory, particularly in construction in progress, raising concerns about potential oversupply. The average price of homes delivered was at the low end of the range due to a mix of more homes delivered in the mountain region and fewer in the North and Pacific regions. Q: Can you explain the significant rise in inventory, particularly in construction in progress? A: Martin Connor, CFO: We have more specs under construction at a further stage of completion than in prior years. This is to ensure we have the inventory to meet our delivery guidance of 11,400 homes for the year. Q: How are you managing your spec inventory in light of the mixed spring selling season? A: Douglas Yearley, CEO: We are strategically timing our spec inventory to align with seasonality, focusing on the summer months when demand is higher. We have 3,200 spec homes at various stages of construction and are managing starts based on market conditions. Q: What is your approach if the spring selling season remains mixed? A: Douglas Yearley, CEO: If the mixed market continues, we will reduce overall land spend and be more conservative in certain markets. We have a strong pipeline of owned and optioned land, allowing us to be selective in new acquisitions. Q: How are you handling incentives in your gross margin forecast? A: Douglas Yearley, CEO: We expect higher margins due to more luxury and spec homes in our mix. Incentives have decreased from $68,000 in Q4 2024 to $55,000 at the start of Q2 2025, but we may adjust them based on market conditions. Q: Are you seeing any impact on demand in Southern California and Washington DC due to external factors like wildfires or employment uncertainty? A: Douglas Yearley, CEO: No, both Southern California and Washington DC markets remain strong. Q: How are you addressing the mixed demand trends and their impact on your production pipeline? A: Douglas Yearley, CEO: We are balancing pace and price, with a focus on maintaining our gross margin guidance. We are confident in our backlog and the ability to manage incentives to achieve our targets. Q: What is your outlook on land cost inflation and its impact on your operations? A: Douglas Yearley, CEO: Land cost inflation is modest, in the low to mid-single digits. We are finding unique opportunities, such as converting suburban office spaces to residential, which offer good margins. Q: How are you managing SG&A expenses given the current market conditions? A: Douglas Yearley, CEO: SG&A leverage will improve in the second half of the year due to higher revenue. We expect SG&A as a percentage of revenue to be in the low 8s for the second half of 2025. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
