Toll Brothers Q4 2021 Earnings Report
Key Takeaways
Toll Brothers reported strong Q4 2021 results with a significant increase in net income, earnings per share, and home sales revenues compared to the same quarter last year. The company's backlog value also reached a record high, and they foresee continued growth and profitability in FY 2022 despite supply chain and labor constraints.
Net income and earnings per share increased to $374.3 million and $3.02 per share diluted, respectively.
Home sales revenues rose to $2.95 billion, with 3,341 homes delivered.
Net signed contract value reached $3.00 billion.
Backlog value at quarter end was $9.50 billion.
Toll Brothers
Toll Brothers
Toll Brothers Revenue by Segment
Forward Guidance
Toll Brothers projects continued growth with a focus on capital efficiency, expecting revenue growth of 20% in FY 2022 and a 250 basis point improvement in full-year adjusted gross margin. They anticipate a further significant increase in their return on beginning equity to well over 20%.
Positive Outlook
- Strong pricing embedded in record backlog
- Projected revenue growth of 20% in FY 2022
- Expected improvement in full-year adjusted gross margin
- Anticipated increase in return on beginning equity
- Projected 10% community count growth by FYE 2022
Challenges Ahead
- Significant supply chain constraints
- Labor constraints
- Extended delivery times for homes
- Uncertainty surrounding the duration and impact of Covid-19
- Potential impact of inflation and interest rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income