Toll Brothers Q1 2022 Earnings Report
Key Takeaways
Toll Brothers reported a strong first quarter in fiscal year 2022, with net income and earnings per share increasing significantly. Home sales revenues also saw a rise, driven by strong market demand and limited housing supply. The company reaffirmed its full-year projections, expecting continued growth and profitability.
Net income and EPS increased by 57% and 63%, respectively, compared to the first quarter of FY 2021.
Home sales revenues rose by 20% year-over-year, with a 9% increase in delivered homes.
Net signed contract value increased by 19% to $3.0 billion, and contracted homes were up by 2%.
Backlog value reached a record $10.8 billion, a 45% increase from the previous year.
Toll Brothers
Toll Brothers
Toll Brothers Revenue by Segment
Forward Guidance
Toll Brothers reaffirms its full year projections, including 20% growth in home sales revenues, an adjusted gross margin of approximately 27.5%, and a return on beginning equity of approximately 23%.
Positive Outlook
- Reaffirming all full year projections.
- Expecting 20% growth in home sales revenues.
- Anticipating an adjusted gross margin of approximately 27.5%.
- Projecting a return on beginning equity of approximately 23%.
- Continue to expect to grow our community count by 10% by fiscal year end from the 340 communities we were operating at the end of FY 2021.
Challenges Ahead
- Ongoing supply chain disruptions remain a challenge.
- Labor shortages remain a challenge.
- Municipal delays remain a challenge.
- First quarter issues were exacerbated as the Omicron wave peaked in January.
- Fewer deliveries than expected due to Omicron wave.
Revenue & Expenses
Visualization of income flow from segment revenue to net income