Toll Brothers (TOL) reported record fiscal Q3 sales of $2.94 billion, surpassing estimates of $2.85 billion and up 8% from $2.72 billion year-over-year. Earnings per share reached $3.73, beating expectations of $3.59 and up from $3.60 in the same quarter last year. Despite market challenges, the company delivered 2,959 homes at an average price of $974,000 and maintained a gross margin of 27.5%.
In Q3, Toll Brothers signed 2,388 net contracts worth $2.4 billion, bringing its total backlog to 5,492 homes valued at $6.37 billion, although this represents declines of 19% and 10% year-over-year, respectively. The company expects to deliver approximately 11,200 homes for the full year, aligning with the lower end of its previous guidance range. Toll Brothers’ shares have risen over 25% in three months but remain 23% below their 52-week high of $169.
