Zacks Research Predicts Weaker Earnings for Toll Brothers

Key Points

• Zacks Research has lowered its FY2025 earnings per share (EPS) estimate for Toll Brothers to $13.75, down from $13.98, while the consensus estimate stands at $13.83.
• Toll Brothers reported a Q3 EPS of $3.73, beating estimates, with revenues reaching $2.95 billion, an 8% year-over-year increase.
• Recent institutional activity shows strong investor interest, with 91.76% of the stock owned by hedge funds and other institutional investors.

Toll Brothers Inc. (NYSE:TOL - Free Report) - Equities research analysts at Zacks Research lowered their FY2025 EPS estimates for shares of Toll Brothers in a research report issued to clients and investors on Tuesday, September 2nd. Zacks Research analyst Team now expects that the construction company will post earnings of $13.75 per share for the year, down from their prior estimate of $13.98. The consensus estimate for Toll Brothers' current full-year earnings is $13.83 per share. Zacks Research also issued estimates for Toll Brothers' Q4 2025 earnings at $4.77 EPS, Q1 2026 earnings at $1.85 EPS, Q2 2026 earnings at $3.39 EPS, Q3 2026 earnings at $3.80 EPS, Q1 2027 earnings at $2.18 EPS, Q2 2027 earnings at $3.54 EPS and Q3 2027 earnings at $3.90 EPS.

Toll Brothers (NYSE:TOL - Get Free Report) last released its quarterly earnings results on Tuesday, August 19th. The construction company reported $3.73 EPS for the quarter, beating analysts' consensus estimates of $3.59 by $0.14. The firm had revenue of $2.95 billion during the quarter, compared to analyst estimates of $2.86 billion. Toll Brothers had a net margin of 12.64% and a return on equity of 17.42%. The business's revenue for the quarter was up 8.0% on a year-over-year basis. During the same period in the previous year, the business earned $3.60 EPS.

A number of other research analysts have also commented on the stock. Barclays restated an "underweight" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Seaport Res Ptn upgraded shares of Toll Brothers from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 23rd. Raymond James Financial restated a "strong-buy" rating and set a $160.00 price target (up from $130.00) on shares of Toll Brothers in a research report on Monday, August 25th. UBS Group restated a "buy" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Finally, Royal Bank Of Canada upped their target price on shares of Toll Brothers from $133.00 to $145.00 and gave the stock an "outperform" rating in a research report on Thursday, August 21st. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $147.85.

Toll Brothers Stock Up 1.8%

TOL opened at $140.73 on Thursday. The company has a fifty day moving average price of $125.48 and a 200-day moving average price of $112.15. The firm has a market capitalization of $13.56 billion, a P/E ratio of 10.34, a price-to-earnings-growth ratio of 0.91 and a beta of 1.33. The company has a debt-to-equity ratio of 0.36, a current ratio of 4.38 and a quick ratio of 0.51. Toll Brothers has a one year low of $86.67 and a one year high of $169.52.

Institutional Trading of Toll Brothers

Institutional investors and hedge funds have recently bought and sold shares of the stock. Trail Ridge Investment Advisors LLC lifted its holdings in shares of Toll Brothers by 0.5% during the first quarter. Trail Ridge Investment Advisors LLC now owns 25,624 shares of the construction company's stock valued at $2,706,000 after purchasing an additional 132 shares during the last quarter. Left Brain Wealth Management LLC purchased a new position in shares of Toll Brothers during the first quarter valued at approximately $317,000. MQS Management LLC purchased a new position in shares of Toll Brothers during the first quarter valued at approximately $649,000. Financial Security Advisor Inc. purchased a new position in shares of Toll Brothers during the first quarter valued at approximately $231,000. Finally, Concurrent Investment Advisors LLC purchased a new position in shares of Toll Brothers during the first quarter valued at approximately $227,000. 91.76% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Toll Brothers

In other news, CAO Michael J. Grubb sold 500 shares of the stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $120.00, for a total transaction of $60,000.00. Following the completion of the sale, the chief accounting officer directly owned 2,439 shares in the company, valued at approximately $292,680. This represents a 17.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Stephen F. East sold 2,500 shares of the stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $115.33, for a total transaction of $288,325.00. Following the sale, the director owned 12,787 shares of the company's stock, valued at approximately $1,474,724.71. This represents a 16.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 38,601 shares of company stock valued at $5,183,374. 1.54% of the stock is currently owned by insiders.

Toll Brothers Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 25th. Shareholders of record on Friday, July 11th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.7%. The ex-dividend date was Friday, July 11th. Toll Brothers's dividend payout ratio is presently 7.35%.

About Toll Brothers

Toll Brothers, Inc, together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.