Toll Brothers' Earnings Preview: Analyst Expectations and Market Insights

Toll Brothers is set to release its quarterly earnings report on August 19, with analysts expecting an EPS of $3.59. The company's share price has been down 1.59% over the last 52-week period, and analysts currently favor an Outperform rating with a potential 8.32% upside. The peer analysis summary compares Toll Brothers to TopBuild, Installed Building Products, and Taylor Morrison Home, demonstrating their relative market positions and performance expectations.

Toll Brothers Inc. (TOL), a leading luxury homebuilder in the United States, is set to release its quarterly earnings report on August 19, 2025. Analysts anticipate an earnings per share (EPS) of $3.59, marking a slight decline of 0.3% year over year [2].

The company's share price has been down 1.59% over the last 52-week period, suggesting a period of underperformance. Despite this, analysts currently favor an Outperform rating with a potential 8.32% upside, indicating a bullish outlook [1].

Toll Brothers operates in over 60 markets across 24 states, catering to move-up, active-adult, and second-homebuyers. The company's market capitalization is above the industry average, reflecting a relatively larger size and higher investor confidence [1].

In terms of revenue, Toll Brothers experienced a decline of approximately -3.47% over the last 3 months, indicating a decrease in top-line earnings compared to competitors in the Consumer Discretionary sector [1].

The company's financial strength is evident in its net margin and return on equity (ROE). Toll Brothers boasts a remarkable net margin of 12.87% and an ROE of 4.48%, showcasing strong profitability and effective cost management [1]. Additionally, the company's return on assets (ROA) is a standout performer, exceeding industry averages at 2.53% [1].

Debt management is another area where Toll Brothers excels. The company's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.37 [1].

A peer analysis summary compares Toll Brothers to TopBuild, Installed Building Products, and Taylor Morrison Home, demonstrating their relative market positions and performance expectations. Toll Brothers ranks at the bottom for Revenue Growth and Gross Profit but in the middle for Return on Equity [1].

Investors are closely monitoring Toll Brothers' earnings report, with the stock having increased by 12.8% over the past month, outperforming the Zacks S&P 500 composite and the Zacks Building Products - Home Builders industry [2].

Oppenheimer maintained its Outperform rating and $155.00 price target on Toll Brothers stock ahead of the earnings report, citing strong order trends and a constructive commentary from other homebuilders [3]. The company's strong inventory position and lower mortgage rates are expected to support volume growth in the second half of 2025 [3].

References:

[1] https://www.benzinga.com/insights/earnings/25/08/47185791/uncovering-potential-toll-brotherss-earnings-preview
[2] https://site.financialmodelingprep.com/market-news/toll-brothers-inc-tol-quarterly-earnings-overview
[3] https://ng.investing.com/news/analyst-ratings/oppenheimer-reiterates-outperform-rating-on-toll-bros-stock-ahead-of-earnings-93CH-2063607