Toll Brothers Earnings: Here’s Why Investors Like These Results

Toll Brothers Inc. (NYSE:TOL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.69%.

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Toll Brothers Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 40% to $0.14 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 38.09% to $516 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Toll Brothers Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.07. It beat the average revenue estimate of $511.06 million.

Quoting Management: Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer, stated: “Demand accelerated significantly this quarter. Increased pricing power and stronger sales drove our agreements up 57% in dollars and 36% in units – the highest for any quarter in seven years.
“Our strong brand, land position and capital base are giving us a competitive advantage in many of our markets. Buyers who have been on the sidelines for six years are jumping in. Low interest rates, improved customer confidence, a strong stock market, rising home prices and a reawakening economy are stoking the demand that is fueling our luxury market.”

Key Stats (on next page)…

Revenue increased 21.53% from $424.6 million in the previous quarter. EPS increased 366.67% from $0.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.28 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $0.84 to a profit of $0.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)