Uncovering Potential: Toll Brothers's Earnings Preview
Toll Brothers (NYSE:TOL) is set to release its quarterly earnings report on August 19, 2025, with analysts expecting an EPS of $3.59. The company previously beat EPS estimates by $0.62, but shares fell 0.48% afterward. Currently trading at $130.5, shares are down 1.59% over the past year. Analysts rate Toll Brothers as Outperform, with a one-year price target of $141.36, indicating an 8.32% upside. Despite challenges in revenue growth, the company maintains strong profitability metrics, including a net margin of 12.87% and a debt-to-equity ratio of 0.37.
Toll Brothers (NYSE:TOL) will release its quarterly earnings report on Tuesday, 2025-08-19. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Toll Brothers to report an earnings per share (EPS) of $3.59.
Investors in Toll Brothers are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.62, leading to a 0.48% drop in the share price the following trading session.
Here's a look at Toll Brothers's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.88 | 2.05 | 4.34 | 3.31 |
| EPS Actual | 3.50 | 1.75 | 4.63 | 3.60 |
| Price Change % | -0.0% | -6.0% | -7.000000000000001% | 6.0% |
Toll Brothers Share Price Analysis
Shares of Toll Brothers were trading at $130.5 as of August 15. Over the last 52-week period, shares are down 1.59%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Insights on Toll Brothers
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Toll Brothers.
The consensus rating for Toll Brothers is Outperform, based on 11 analyst ratings. With an average one-year price target of $141.36, there's a potential 8.32% upside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of TopBuild, Installed Building Prods and Taylor Morrison Home, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for TopBuild, with an average 1-year price target of $418.33, suggesting a potential 220.56% upside.
- Analysts currently favor an Neutral trajectory for Installed Building Prods, with an average 1-year price target of $220.33, suggesting a potential 68.84% upside.
- Analysts currently favor an Buy trajectory for Taylor Morrison Home, with an average 1-year price target of $85.0, suggesting a potential 34.87% downside.
Peer Analysis Summary
The peer analysis summary outlines pivotal metrics for TopBuild, Installed Building Prods and Taylor Morrison Home, 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 | -3.47% | $705.44M | 4.48% |
| TopBuild | Buy | -4.99% | $394.04M | 7.12% |
| Installed Building Prods | Neutral | 3.08% | $259.90M | 10.41% |
| Taylor Morrison Home | Buy | 1.96% | $467.49M | 3.23% |
Key Takeaway:
Toll Brothers ranks at the bottom for Revenue Growth and Gross Profit, indicating lower performance in these areas compared to its peers. However, it ranks in the middle for Return on Equity, suggesting average profitability relative to its peers.
Unveiling the Story Behind Toll Brothers
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-homebuyers. 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.
Unraveling the Financial Story of Toll Brothers
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Challenges: Toll Brothers's revenue growth over 3 months faced difficulties. As of 30 April, 2025, the company experienced a decline of approximately -3.47%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Toll Brothers's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.87%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Toll Brothers's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.48%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.53%, the company showcases effective utilization of assets.
Debt Management: Toll Brothers's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.37.
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.
