Luxury homebuilder Toll Brothers (TOL) reported better-than-expected Fiscal fourth-quarter financial results, but its stock fell by 2% in after-hours trading nonetheless.
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The Pennsylvania-based company posted earnings per share (EPS) of $4.63 for the quarter ended October 31, beating consensus estimates of $4.34. Revenue in the period came in at $3.33 billion, topping the $3.17 billion that was expected on Wall Street.
The company said that it delivered 3,431 homes during Fiscal Q4, up 25% from the same period last year. Home sales revenues rose 10% from a year earlier to $3.26 billion. Toll Brothers CEO Douglas Yearley said the company enjoyed its “strongest year ever” during Fiscal 2024.
Backlog Declines
Despite the strong results, Toll Brothers’ backlog of homes declined from a year earlier. The backlogs value was $6.47 billion at the end of Fiscal Q4, down 7% year-over-year, while homes in backlog fell 9% to 5,996 units. News of the backlog helped push TOL stock lower in after hours trading.
As for guidance, Toll Brothers said it expects to deliver between 11,200 and 11,600 homes at an average price of $945,000 to $965,000 for all of Fiscal 2025. The company noted that it repurchased 1.3 million shares during Fiscal Q4 and finished the quarter with $1.30 billion of cash on hand.
TOL stock has gained 53% so far this year.
Is TOL Stock a Buy?
The stock of Toll Brothers has a consensus Strong Buy rating among five Wall Street analysts. That rating is based on four Buy and one Hold recommendations made in the last three months. The average TOL price target of $174.75 implies 11.68% upside from current levels.
