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Jan 31, 2024

Toll Brothers Q1 2024 Earnings Report

Toll Brothers reported a strong first quarter with increased revenues and earnings.

Key Takeaways

Toll Brothers announced its FY 2024 first quarter results, featuring a 10% increase in home sales revenues to $1.93 billion and a 32% rise in earnings per share to $2.25. The company signed 2,042 net contracts for $2.06 billion, marking a substantial increase in demand, and anticipates continued strength in the new home market.

Net income reached $239.6 million, with earnings per share at $2.25, surpassing the previous year's figures.

Home sales revenues increased by 10% to $1.93 billion, driven by the delivery of 1,927 homes.

Net signed contract value rose by 42% to $2.06 billion, indicating strong demand.

Adjusted home sales gross margin improved to 28.9%, reflecting greater operating efficiency.

Total Revenue
$1.95B
Previous year: $1.78B
+9.4%
EPS
$2.25
Previous year: $1.7
+32.4%
Backlog Value
$7.08B
Previous year: $8.58B
-17.5%
Net Contracts Signed Value
$2.06B
Previous year: $1.45B
+42.1%
Backlog Number of Units
6.69K
Previous year: 7.73K
-13.4%
Gross Profit
$538M
Previous year: $437M
+23.3%
Cash and Equivalents
$755M
Previous year: $792M
-4.7%
Free Cash Flow
-$321M
Previous year: -$378M
-15.1%
Total Assets
$12.5B
Previous year: $12B
+4.5%

Toll Brothers

Toll Brothers

Toll Brothers Revenue by Segment

Forward Guidance

Toll Brothers raised its full year guidance across all key metrics, expecting to earn between $13.25 and $13.75 per diluted share in fiscal 2024. For the second quarter, the company anticipates delivering 2,400 to 2,500 units at an average price of $1,000,000 to $1,010,000, with an adjusted home sales gross margin of 27.6%.

Positive Outlook

  • The company expects to deliver 10,000 to 10,500 units in fiscal year 2024.
  • The average delivered price per home is projected to be between $940,000 and $960,000 for the full year.
  • Adjusted home sales gross margin is anticipated to be 28.0% for fiscal year 2024.
  • The period-end community count is expected to reach 410.
  • Other income, income from unconsolidated entities, and gross margin from land sales and other is projected at $260 million for the full year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income