Toll Brothers shares fall nearly 5% as Q1 results disappoint

Published 18/02/2025, 22:50
Updated 18/02/2025, 22:52
Toll Brothers shares fall nearly 5% as Q1 results disappoint

NEW YORK - Toll Brothers Inc. (NYSE:TOL) shares dropped 4.9% in after-hours trading on Tuesday after the luxury homebuilder reported first quarter results that fell short of analyst estimates.

The Fort Washington, Pennsylvania-based company posted earnings of $1.75 per share for the quarter ended January 31, missing the consensus forecast of $2.04 per share. Revenue came in at $1.86 billion, below expectations of $1.91 billion.

Toll Brothers delivered 1,991 homes in the quarter, up 3% year-over-year, but the average price per home declined 7.8% to $924,600.

"While demand was solid in our first quarter, we have seen mixed results so far this spring selling season," said CEO Douglas C. Yearley, Jr. "Although demand has remained healthy in many of our markets and particularly at the higher end, affordability constraints and growing inventories in certain markets are pressuring sales - especially at the lower end."

The company reaffirmed its full-year guidance, expecting to deliver between 11,200 and 11,600 homes at an average price of $945,000 to $965,000.

Net signed contracts rose 13% to 2,307 homes, with a dollar value of $2.31 billion, up 12% from a year ago. Backlog value stood at $6.94 billion, down 2% year-over-year.

Toll Brothers ended the quarter with $574.8 million in cash and cash equivalents, compared to $1.30 billion at the end of fiscal 2024.

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