Key Stats for Toll Brothers Stock
- Price change for Toll Brothers stock: 6%
- $TOL Share Price as of May. 19: $131
- 52-Week High: $168
- $TOL Stock Price Target: $168
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What Happened?
Toll Brothers (TOL) stock climbed after the luxury homebuilder beat Q2 earnings estimates and raised its full-year outlook — a rare combination in a housing market that’s been anything but easy.
- EPS came in at $2.72, topping the $2.59 analyst estimate.
- Revenue hit $2.53 billion, well above the $2.42 billion consensus.
- Home sales revenue of $2.51 billion also cleared expectations.
- Adjusted gross margin was 26.2%, beating guidance by 70 basis points.
- CEO Karl Mistry called it a solid quarter on every key metric.
- Orders were up 7% in units and 8% in dollars year-over-year.
- The company also grew its selling community count to 459, up from 421 a year ago.
- That community count growth is a big part of why Toll Brothers stock is outperforming its peers, even as broader housing demand remains soft.
The company’s luxury focus is doing the heavy lifting here. About 60% of revenue comes from move-up buyers — people with home equity, stock market gains, and job security. They’re less sensitive to mortgage rate swings than first-time buyers.
About 23% of buyers paid in cash for the quarter. Average incentives held flat at 8% for the fourth straight quarter, which signals pricing discipline.
Management raised full-year delivery guidance to 10,400–10,700 homes and bumped the average delivered price by $12,500 at the midpoint. Full-year adjusted gross margin guidance ticked up to 26.1%.
One callout — deliveries of 2,491 homes came in below last year’s 2,899, and year-over-year revenue fell from $2.74 billion. The business is smaller than a year ago, but more profitable and better positioned.
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What the Market Is Telling Us About Toll Brothers Stock
Toll Brothers stock is getting rewarded for doing exactly what it promised — staying disciplined and protecting margins in a challenging market. While other builders cut guidance this season, Toll Brothers raised it.
The affluent buyer segment continues to prove more resilient than the broader housing market. As long as that holds, Toll Brothers stock has a credible case for further upside.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
