Homebuilding company Toll Brothers (NYSE:TOL) will be announcing earnings results this Tuesday after market close. Here’s what you need to know.
Toll Brothers beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $3.42 billion, up 2.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is Toll Brothers a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Toll Brothers’s revenue to be flat year on year at $1.86 billion, improving from the 4.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.11 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 3.7% on average.
Looking at Toll Brothers’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Taylor Morrison Home’s revenues decreased 10.9% year on year, beating analysts’ expectations by 7.2%, and Champion Homes reported revenues up 1.8%, in line with consensus estimates. Taylor Morrison Home traded down 1.4% following the results while Champion Homes was up 11.1%.
Read our full analysis of Taylor Morrison Home’s results here and Champion Homes’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 8.1% on average over the last month. Toll Brothers is up 15.4% during the same time and is heading into earnings with an average analyst price target of $155.60 (compared to the current share price of $165.75).
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