Back to top

Image: Bigstock

Toll Brothers (TOL) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

Read MoreHide Full Article

Wall Street analysts expect Toll Brothers (TOL - Free Report) to post quarterly earnings of $4.31 per share in its upcoming report, which indicates a year-over-year increase of 4.9%. Revenues are expected to be $3.16 billion, up 4.6% from the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

With that in mind, let's delve into the average projections of some Toll Brothers metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts expect 'Revenues- Home Sales' to come in at $3.15 billion. The estimate suggests a change of +6.6% year over year.

The consensus among analysts is that 'Revenues- Land sales' will reach $37.15 million. The estimate suggests a change of -45.6% year over year.

Based on the collective assessment of analysts, 'Backlog - Units' should arrive at 5,944. Compared to the present estimate, the company reported 6,578 in the same quarter last year.

The combined assessment of analysts suggests that 'Average delivered price (Total Average Price Per Unit)' will likely reach $944.17. Compared to the present estimate, the company reported $1,071.50 in the same quarter last year.

It is projected by analysts that the 'Net contracts - Units' will reach 2,508. The estimate is in contrast to the year-ago figure of 2,038.

According to the collective judgment of analysts, 'Closed/Delivered - Units' should come in at 3,343. Compared to the current estimate, the company reported 2,755 in the same quarter of the previous year.

Analysts predict that the 'Average Backlog Price' will reach $1,027.75. The estimate compares to the year-ago value of $1,055.80.

Analysts' assessment points toward 'Number of Selling Communities' reaching 411. The estimate is in contrast to the year-ago figure of 370.

Analysts forecast 'Backlog - Value' to reach $6.32 billion. The estimate compares to the year-ago value of $6.95 billion.

The average prediction of analysts places 'Gross Margin- Home sales' at $820.73 million. Compared to the current estimate, the company reported $810.38 million in the same quarter of the previous year.

View all Key Company Metrics for Toll Brothers here>>>

Shares of Toll Brothers have experienced a change of +0.2% in the past month compared to the +5.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), TOL is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Toll Brothers Inc. (TOL) - free report >>

Published in