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Jul 31, 2024
Toll Brothers Q3 2024 Earnings Report
Toll Brothers reported strong third quarter results, driven by record home sales revenue and margin outperformance.
Key Takeaways
Toll Brothers reported strong third quarter results with a 2% increase in home sales revenues to $2.72 billion and a net income of $374.6 million. The company raised its full year guidance across key home building metrics and expects to earn between $14.50 and $14.75 per diluted share.
Home sales revenues increased by 2% to $2.72 billion, with 2,814 homes delivered, up 11%.
Net signed contract value rose by 11% to $2.41 billion, with 2,490 homes contracted, also up 11%.
Adjusted home sales gross margin was 28.8%, exceeding guidance due to favorable mix and greater efficiencies.
The company repurchased $246 million of common stock, bringing year-to-date repurchases to $427 million.
Toll Brothers
Toll Brothers
Toll Brothers Revenue by Segment
Toll Brothers Revenue by Geographic Location
Revenue by Segment
North Revenue
CapyFin.comMid-Atlantic Revenue
CapyFin.comSouth Revenue
CapyFin.comMountain Revenue
CapyFin.comPacific Revenue
CapyFin.comLand Sales Revenue
CapyFin.comRevenue by Geographic Location
North Revenue
CapyFin.comMid-Atlantic Revenue
CapyFin.comSouth Revenue
CapyFin.comMountain Revenue
CapyFin.comPacific Revenue
CapyFin.com Forward Guidance
Toll Brothers anticipates delivering 3,275 - 3,375 units at an average price of $940,000 - $950,000 in the fourth quarter. They expect an adjusted home sales gross margin of 27.5% and SG&A as a percentage of home sales revenues of 8.6%. For the full fiscal year 2024, deliveries are projected to be 10,650 - 10,750 units at an average price of $975,000, with an adjusted home sales gross margin of 28.3% and SG&A at 9.4%.
Positive Outlook
- Deliveries are expected to be between 3,275 and 3,375 units in Q4.
- The average delivered price per home is projected to be $940,000 - $950,000 in Q4.
- Adjusted home sales gross margin is anticipated to be 27.5% in Q4.
- Full year deliveries are expected to be between 10,650 and 10,750 units.
- The full year average delivered price per home is projected to be $975,000.
Challenges Ahead
- SG&A, as a percentage of home sales revenues, is expected to be 8.6% in Q4.
- Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other is projected at $47 million for Q4.
- The tax rate is expected to be 26.0% for Q4.
- SG&A, as a percentage of home sales revenues, is expected to be 9.4% for the full year.
- The tax rate is expected to be 25.4% for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income