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Here's What Key Metrics Tell Us About Toll Brothers (TOL) Q3 Earnings

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Toll Brothers (TOL - Free Report) reported $2.95 billion in revenue for the quarter ended July 2025, representing a year-over-year increase of 8%. EPS of $3.73 for the same period compares to $3.60 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.85 billion, representing a surprise of +3.25%. The company delivered an EPS surprise of +3.9%, with the consensus EPS estimate being $3.59.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Toll Brothers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Closed/Delivered - Units: 2,959 compared to the 2,919 average estimate based on five analysts.
  • Backlog - Units: 5,492 compared to the 5,782 average estimate based on five analysts.
  • Average delivered price (Total Average Price Per Unit): $973.60 compared to the $973.32 average estimate based on five analysts.
  • Net contracts - Units: 2,388 compared to the 2,637 average estimate based on five analysts.
  • Number of Selling Communities: 420 versus the three-analyst average estimate of 430.
  • Average Backlog Price: $1,161.00 compared to the $1,125.97 average estimate based on two analysts.
  • Backlog - Value: $6.38 billion versus $6.44 billion estimated by two analysts on average.
  • Revenues- Home Sales: $2.88 billion compared to the $2.84 billion average estimate based on six analysts. The reported number represents a change of +5.7% year over year.
  • Revenues- Land sales: $64.14 million compared to the $16.34 million average estimate based on three analysts. The reported number represents a change of +1747.4% year over year.
  • Gross Margin- Home sales: $738.21 million compared to the $734.13 million average estimate based on four analysts.
  • Gross Margin- Land sales and other: $3.18 million compared to the $0.3 million average estimate based on three analysts.

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

Shares of Toll Brothers have returned +12.5% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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