Toll Brothers Shares Dip 0.57% Amid Strong Q3 Results Trading Volume Ranks 222nd

Toll Brothers (TOL) fell 0.57% on August 20, 2025, with a trading volume of $0.47 billion, ranking 222nd in the market. The luxury homebuilder reported Q3 fiscal 2025 results exceeding estimates, driven by higher revenues and disciplined cost management. Despite macroeconomic challenges, the company emphasized its focus on affluent customers and strategic pricing to maintain margins.

Third-quarter adjusted earnings per share reached $3.73, surpassing the $3.59 consensus. Total revenues of $2.945 billion grew 8% year-over-year, bolstered by a 5% increase in home deliveries and an average selling price of $973,600. However, net signed contracts declined by 4% in units to 2,388, while the cancellation rate rose to 7.5%. Backlog units fell 19% year-over-year to 5,492, reflecting a 10% drop in potential revenue to $6.38 billion.

Management highlighted cost control measures, with SG&A expenses at 8.8% of home sales revenue, down from 9.0% in the prior year. Adjusted gross margins contracted to 27.5%, a 130-basis-point decline year-over-year, but remained above guidance. The company repurchased $201.4 million in shares during the first half of fiscal 2025 and maintained a strong balance sheet, with $852.3 million in cash and $2.19 billion in revolving credit facility availability.

For Q4, Toll Brothers projected 3,350 home deliveries and a 27% adjusted gross margin, signaling cautious volume expectations. FY2025 guidance was narrowed to 11,200 deliveries, with an average selling price of $950,000–$960,000. The company emphasized its positioning in high-growth markets and a 50% build-to-order inventory mix to mitigate speculative risks and capitalize on luxury demand.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to the present has shown moderate returns. As of the latest data, the total profit reached $2,385.14.