Overview

* Toll Brothers Inc ( TOL ) fiscal Q3 net income at $369.6 mln, adjusted EPS beats estimates

* Home sales revenue for fiscal Q3 rises 6% yr/yr, no analyst estimate provided

* Net signed contract value flat at $2.41 bln, contracted homes down 4%

Outlook

* Toll Brothers ( TOL ) sees Q4 deliveries of 3,350 units

* Company expects FY 2025 deliveries of 11,200 units

* Toll Brothers ( TOL ) forecasts Q4 average delivered price per home $970,000-$980,000

* Company projects FY 2025 adjusted home sales gross margin of 27.25%

Result Drivers

* HOME SALES REVENUE - Increased 6% yr/yr driven by higher average home prices despite a decline in contracted homes

* ADJUSTED GROSS MARGIN - Achieved 27.5%, exceeding guidance by 25 basis points, reflecting strategic pricing and operational efficiency

* BACKLOG DECLINE - Backlog value and units decreased, indicating potential future challenges in maintaining sales momentum

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Home $2.88

Sales bln

Revenues

Q3 Beat $3.73 $3.6 (15

Adjusted Analysts

EPS )

Q3 EPS $3.73

Q3 Home 27.5%

Sales

Adjusted

Gross

Margin

Q3 $487.70

Operatin mln

g Income

Q3 $499.50

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the homebuilding peer group is "buy"

* Wall Street's median 12-month price target for Toll Brothers Inc ( TOL ) is $143.00, about 8.3% above its August 18 closing price of $131.18

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)