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Toll Brothers (TOL) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

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Toll Brothers (TOL - Free Report) reported $1.95 billion in revenue for the quarter ended January 2024, representing a year-over-year increase of 9.4%. EPS of $2.25 for the same period compares to $1.70 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.87 billion, representing a surprise of +4.09%. The company delivered an EPS surprise of +27.12%, with the consensus EPS estimate being $1.77.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Toll Brothers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Closed/Delivered - Units: 1,927 versus the five-analyst average estimate of 1,834.
  • Backlog - Units: 6,693 versus the five-analyst average estimate of 6,658.
  • Average delivered price (Total Average Price Per Unit): $1,002.50 compared to the $992.76 average estimate based on five analysts.
  • Net contracts - Units: 2,042 versus 1,964 estimated by four analysts on average.
  • Average Backlog Price: $1,058 versus $1,030 estimated by three analysts on average.
  • Number of Selling Communities: 377 versus the three-analyst average estimate of 378.
  • Backlog - Value: $7.08 billion compared to the $6.82 billion average estimate based on two analysts.
  • Revenues- Home Sales: $1.93 billion versus $1.84 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change.
  • Revenues- Land sales: $16.01 million versus the three-analyst average estimate of $31.31 million. The reported number represents a year-over-year change of -47.9%.
  • Gross Margin- Home sales: $532.61 million compared to the $482.64 million average estimate based on four analysts.
  • Gross Margin- Land sales and other: $5.85 million versus the three-analyst average estimate of -$2.54 million.
View all Key Company Metrics for Toll Brothers here>>>

Shares of Toll Brothers have returned -0.8% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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