- Toll Brothers raised their full-year forecast for home deliveries, now predicting between 10,400 to 10,800 units compared to their previous forecast of 10,000 to 10,500 units. This surpasses the previous estimate of 10,352 units.
- SG&A expenses projected to take up 9.6% of the home sales revenue, down from their previous prediction of 9.8%. This is less than the estimated 9.77%.
- The company is maintaining their prediction for an adjusted home sales gross margin of 28% for the year, slightly higher than the estimated 27.6%.
- The end community count projection remains at 410, over the estimated 404.97.
- For the third quarter, anticipated home deliveries are between 2,750 to 2,850 units, close to the estimated 2,761 units.
- The third quarter’s adjusted home sales gross margin is projected at 27.7% and SG&A expenses at 9.2% of the home sales revenue, more or less in alignment with the respective estimates of 27.5% and 9.24%.
- In the second quarter, Earnings Per Share (EPS) was $4.55, compared to last year’s $2.85, and revenue grew by 13% to $2.84 billion, surpassing the estimate of $2.6 billion.
- Net signed contracts for the second quarter were at 3,041 units, a 30% year-on-year increase, slightly above the estimate of 3,004 units.
- The Backlog for the second quarter was at 7,093 units, falling short of the estimate of 7,249 units.
- The company’s comments hinted at a projected earning of approximately $14.00 per diluted share in fiscal 2024 and a return on beginning equity of approximately 22%, attributing the demand for new homes to a resilient economy, favourable demographics and a shortage of supply.
Toll Brothers on Smartkarma
Analyst coverage of Toll Brothers on Smartkarma highlights a bullish outlook on the company’s future prospects. Baptista Research, in their report titled “Toll Brothers: Initiation of Coverage – How Their Innovative Community Expansion Is Set to Dominate the Market in 2024! – Major Drivers,” commends Toll Brothers for their strong performance in the fourth quarter of Fiscal Year 2023. Despite challenges like high mortgage rates and global uncertainties, Toll Brothers delivered 2,755 homes and generated $2.95 billion in home sales revenues. The report also lauds the company’s full-year performance, with 9,597 homes delivered at an average price of $1.03 million, resulting in record total homebuilding revenues of $9.9 billion.
A look at Toll Brothers Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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 looks promising for long-term investment. With a high Growth score of 5 and strong Momentum score of 5, the company seems well-positioned for future expansion and market performance. Additionally, its Value and Resilience scores of 3 suggest stability and reasonable pricing, making it an attractive option for investors looking for both growth potential and solidity. Despite its lower Dividend score of 2, Toll Brothers‘ focus on luxury homebuilding and diversified operations could still yield favorable returns over time.
Toll Brothers, Inc. is a luxury home construction company that caters to upscale buyers in various regions across the United States. Specializing in building customized single and attached homes on its developed land, Toll Brothers also offers a range of additional services including architectural design, engineering, mortgage, and insurance brokerage. With an overall positive outlook based on Smartkarma Smart Scores, particularly strong in Growth and Momentum, Toll Brothers appears to have a promising trajectory for long-term success 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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