Toll Brothers' Q4 Earnings Surge by 13%
Fort Washington, Tuesday, 10 December 2024.
Toll Brothers achieved a nearly 13% increase in earnings per share for Q4, driven by a 25% rise in home deliveries and strong demand in the luxury housing market.
Strong Q4 Performance
Toll Brothers (NYSE: TOL) reported earnings per share of $4.63 for its fourth fiscal quarter ended October 31, 2024, compared to $4.11 in the same period last year [1]. The luxury homebuilder exceeded analyst expectations of $4.34 per share [3], demonstrating resilience in the high-end housing market. Revenue reached $3.33 billion, surpassing consensus forecasts of $3.17 billion [3][5].
Delivery Growth and Sales Performance
The company delivered 3,431 homes in Q4, marking a significant 25% increase from the previous year [1][3]. Home sales revenues climbed 10% year-over-year to $3.26 billion [1]. The net value of signed contracts during the quarter showed remarkable growth, increasing by 32% to $2.66 billion [1], indicating strong market demand for luxury homes.
Full-Year Achievement and Future Outlook
For the full fiscal year 2024, Toll Brothers achieved earnings per share of $15.01, exceeding their previously announced target range of $14.50-14.75 [1]. The company posted record residential sales revenue of $10.6 billion [1]. Looking ahead to fiscal 2025, Toll Brothers projects deliveries of between 11,200 and 11,600 homes at an average price range of $945,000 to $965,000 [3].
Financial Position and Market Response
Despite strong earnings, Toll Brothers’ stock experienced a slight 2% decline in after-hours trading on Monday, December 9, 2024 [3]. The company maintains a solid financial position with $1.30 billion in cash and cash equivalents, and an improved net debt-to-capital ratio of 15.2%, down from 17.7% a year ago [3]. During Q4, the company demonstrated confidence in its future by repurchasing approximately 1.3 million shares at an average price of $150.19 per share, totaling $200.9 million [3].