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Apr 30, 2024
Toll Brothers Q2 2024 Earnings Report
Toll Brothers reported increased home sales revenues and net signed contract value, but a decrease in backlog value. Record second quarter earnings were achieved, driven by strong home building results and a significant land sale gain.
Key Takeaways
Toll Brothers reported strong second quarter results for fiscal year 2024, with a 6% increase in home sales revenues to $2.65 billion and a 29% increase in net signed contract value to $2.94 billion. Net income was $481.6 million, or $4.55 per diluted share, which included a $124.1 million gain from the sale of land. The company is increasing its full year revenue and earnings guidance.
Home sales revenues increased by 6% to $2.65 billion with 2,641 homes delivered, also up 6%.
Net signed contract value increased by 29% to $2.94 billion, with contracted homes up 30% to 3,041 units.
Backlog value decreased by 12% to $7.38 billion, with homes in backlog down 6% to 7,093 units.
Net income was $481.6 million, or $4.55 per diluted share, including a $124.1 million gain from a land sale.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Toll Brothers provided financial guidance for the third quarter and full fiscal year 2024.
Positive Outlook
- Deliveries are expected to be between 2,750 and 2,850 units for Q3 and 10,400 to 10,800 units for the full year.
- The average delivered price per home is projected to be $950,000 - $960,000 for Q3 and $960,000 - $970,000 for the full year.
- Adjusted home sales gross margin is expected to be 27.7% for Q3 and 28.0% for the full year.
- Other income, income from unconsolidated entities, and gross margin from land sales and other is expected to be $260 million for the full year.
- The tax rate is projected to be 26.0% for Q3 and 25.5% for the full year.
Challenges Ahead
- SG&A, as a percentage of home sales revenues, is expected to be 9.2% for Q3 and 9.6% for the full year.
- Period-end community count is expected to be 400 for Q3 and 410 for the full year.
- Other income, income from unconsolidated entities, and gross margin from land sales and other is expected to be $0 for Q3.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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