TOL Earnings: Toll Brothers’ Financial Results Beat Wall Street Targets Across the Board

Luxury U.S. home builder Toll Brothers (TOL) has reported Fiscal second quarter financial results that beat Wall Street forecasts.

The Pennsylvania-based company announced earnings per share (EPS) of $3.50, which beat the consensus forecast among analysts of $2.84. Revenue for the quarter came in at $2.74 billion, which was ahead of the $2.50 billion expected on Wall Street.

The positive results have sent TOL stock up 6% in after hours trading. The company’s financial results are closely watched for signs of how the U.S. housing market is performing and for indications of housing demand among American consumers.

Toll Brothers’ income statement. Source: Main Street Data

Slowdown in Home Builds

Toll Brothers said it delivered 2,899 new homes during the latest quarter, up 10% from a year earlier. The company also reported that its home sales gross margin was 26% in the quarter, up slightly from 25.8% a year ago.

However, the value of future contracts for new home builds reached $2.60 billion during Toll Brothers Fiscal Q2, down 11% from the same period of 2024. At the same time the value of the company’s home backlog was $6.84 billion at the end of the quarter, down 7% compared to a year earlier. The weakness in future home builds comes amid signs that the U.S. economy is slowing down.

TOL stock has declined 17% this year.

Is TOL Stock a Buy?

The stock of Toll Brothers has a consensus Moderate Buy rating among nine Wall Street analysts. That rating is based on six Buy, two Hold, and one Sell recommendations assigned in the last three months. The average TOL price target of $137.22 implies 29.39% upside from current levels. These ratings are likely to change after the company’s financial results.

Read more analyst ratings on TOL stock