Toll Brothers (TOL:NYE) Beat on Earnings, Gives Positive Guidance

Toll Bros Earnings Beat

Toll Brothers is a luxury homebuilder that reported better-than-expected results for its fiscal first quarter, which ended in January 2023. The company’s earnings per share came in at $1.70, surpassing Wall Street’s expectations of $1.40 per share. Toll Brothers also exceeded revenue expectations, reporting $1.75 billion in revenue compared to the expected $1.73 billion.

The company’s home sales revenue rose by 4% year-over-year, with 1,826 homes delivered during the quarter. Toll Brothers also provided guidance for the rest of the year, stating that it expects to deliver earnings per share between $8.00 and $9.00 and an adjusted gross margin of 27%.

The positive results suggest that the housing market is rebounding after a challenging 2022. Toll Brothers’ strong earnings are likely due to continued demand for luxury homes, despite rising interest rates and supply chain disruptions that have affected the housing industry. The company’s decision to affirm guidance for the rest of the year also indicates confidence in its ability to maintain this growth trend.

As a result of the positive results, Toll Brothers’ stock rose more than 3% following the announcement. Investors are likely pleased with the company’s ability to exceed expectations and its positive outlook for the future. Overall, Toll Brothers’ strong performance in the first quarter suggests that the luxury homebuilding market is recovering and that the company is well-positioned to capitalize on this trend.

According to 13 analysts, the average target price for Toll Brothers Inc (TOL) over the next 12 months is USD 57.40, which suggests an upside potential of about 2.3% from its last closing price of USD 55.77.

Furthermore, the average analyst rating for TOL is “Buy,” indicating that most analysts covering the stock recommend buying it. This positive sentiment is likely due to the company’s recent strong earnings report and its affirmation of guidance for the rest of the year.

Stock Target Advisor’s own stock analysis of Toll Brothers Inc is “Bearish,” which is based on 11 negative signals and only 3 positive signals. This suggests that the company may face headwinds that could affect its future performance, despite the positive sentiment from most analysts.

In terms of recent performance, TOL’s stock price has declined by 6.25% over the past week, which could be a result of broader market volatility or investor concerns about rising interest rates. However, the stock has gained 3.22% over the last year, which indicates that it has performed well over the long term.

Overall, the mixed signals from analysts and the recent volatility in TOL’s stock price suggest that there may be some uncertainty about the company’s future performance. Investors should carefully consider both the positive and negative factors before making any investment decisions.

 

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