In This Article:
Homebuilding company Toll Brothers (NYSE:TOL) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
Toll Brothers missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $1.86 billion, down 4.6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.
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 decline 12.2% year on year to $2.49 billion, a reversal from the 13.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.86 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 6.9% on average.
Looking at Toll Brothers’s peers in the home builders segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Taylor Morrison Home delivered year-on-year revenue growth of 11.5%, beating analysts’ expectations by 5.7%, and Tri Pointe Homes reported a revenue decline of 21.1%, topping estimates by 4%. Taylor Morrison Home traded down 1.1% following the results while Tri Pointe Homes was also down 1.6%.
Read our full analysis of Taylor Morrison Home’s results here and Tri Pointe Homes’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 20.4% on average over the last month. Toll Brothers is up 15.1% during the same time and is heading into earnings with an average analyst price target of $139.21 (compared to the current share price of $106.07).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.