- Adjusted Home Sales Gross Margin:
- Projected for full fiscal year: 28.3% (previously saw 28%, estimate 27.7%)
- Third quarter result: 28.8% (vs. year-ago 29.3%, estimate 27.3%)
- Fourth quarter forecast: 27.5% (estimate 27.1%)
- Deliveries:
- Full fiscal year: 10,650 to 10,750 (previously saw 10,400 to 10,800, estimate 10,672)
- Fourth quarter forecast: 3,275 to 3,375 (estimate 3,272)
- SG&A Expenses:
- Full fiscal year percentage of home sales revenue: 9.4% (previously saw 9.6%, estimate 9.53%)
- Third quarter result: 9% (vs. year-ago 8.6%, estimate 9.13%)
- Fourth quarter forecast: 8.6% (estimate 9.15%)
- Community Count:
- End fiscal year: 410 (estimate 406.21)
- Fourth quarter forecast: 410 (estimate 410.34)
- Third quarter result: 404 (increase of 17% y/y, estimate 400.12)
- Third Quarter Results:
- Earnings per share (EPS): $3.60 (vs. $3.73 y/y, estimate $3.32)
- Revenue: $2.73 billion (increase of 1.5% y/y, estimate $2.71 billion)
- Net signed contracts: 2,490 units (increase of 11% y/y, estimate 2,793)
- Total home sales: 2,814 units (increase of 11% y/y, estimate 2,832)
- Backlog: 6,769 units (estimate 6,992)
- Backlog value: $7.07 billion (decrease of 10% y/y, estimate $7.24 billion)
- Management Comments:
- Raising full year guidance across all key home building metrics.
- Expect to operate from 410 communities by fiscal year-end.
- Third quarter adjusted gross margin significantly exceeded guidance.
- Third quarter SG&A margin of 9.0% beat guidance by 20 basis points.
- Outperformance in revenue and margin drove quarterly earnings per share to $3.60.
- Analyst Ratings: 12 buys, 5 holds, 3 sells.
“`
Toll Brothers on Smartkarma
Analyst coverage of Toll Brothers on Smartkarma by Baptista Research highlights the company’s strong performance in the luxury homebuilding sector. In their report titled “Toll Brothers: Community Count Growth & Land Acquisitions & Other Major Drivers,” the analysts commend Toll Brothers for exceeding expectations in the second quarter of fiscal year 2024. With 2,641 homes delivered at an average price of around $1 million, Toll Brothers achieved record-breaking home sales revenues of $2.65 billion, representing a 6% year-over-year increase. The company also saw significant growth in net agreements, signing 3,041 agreements totaling $2.94 billion, reflecting a 30% increase in units and 29% in value compared to the previous year.
A look at Toll Brothers Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Toll Brothers shows a positive long-term outlook. With a high Growth score of 5, the company is well-positioned for future expansion and development. Combined with a Momentum score of 4, indicating strong market performance, Toll Brothers seems to have good potential for continued success.
Although the Value and Resilience scores are moderate at 3, Toll Brothers‘ overall outlook remains promising, especially for investors seeking growth opportunities. With a focus on building luxury homes and a range of supporting operations, Toll Brothers appears to have a solid foundation for sustained growth in the real estate market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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