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Toll Brothers (TOL) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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Toll Brothers (TOL - Free Report) reported $2.66 billion in revenue for the quarter ended July 2026, representing a year-over-year decline of 9.7%. EPS of $2.97 for the same period compares to $3.73 a year ago.

The reported revenue represents a surprise of +2.36% over the Zacks Consensus Estimate of $2.6 billion. With the consensus EPS estimate being $2.90, the EPS surprise was +2.41%.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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: 2,662 compared to the 2,658 average estimate based on three analysts.
  • Backlog - Units: 5,312 compared to the 5,357 average estimate based on three analysts.
  • Average delivered price (Total Average Price Per Unit): $996.40 versus the three-analyst average estimate of $976.66.
  • Net contracts - Units: 2,508 versus the three-analyst average estimate of 2,621.
  • Average Backlog Price: $1,174.40 versus the two-analyst average estimate of $1,143.68.
  • Backlog - Value: $6.24 billion compared to the $6.11 billion average estimate based on two analysts.
  • Number of Selling Communities: 471 versus the two-analyst average estimate of 475.
  • Revenues- Home Sales: $2.65 billion compared to the $2.59 billion average estimate based on four analysts. The reported number represents a change of -7.9% year over year.
  • Revenues- Land sales: $6.31 million versus the two-analyst average estimate of $13.17 million. The reported number represents a year-over-year change of -90.2%.
  • Gross Margin- Land sales and other: $-9.68 million versus the two-analyst average estimate of $1.42 million.
  • Gross Margin- Home sales: $634.9 million versus the two-analyst average estimate of $622.11 million.

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

Shares of Toll Brothers have returned -1% over the past month versus the Zacks S&P 500 composite's +4% 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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