Toll Brothers Stock Gains On Q3 Earnings Beat

Toll Brothers Inc TOL reported third-quarter FY21 revenue growth of 37% year-on-year, to $2.255 billion, marginally ahead of the consensus of $2.23 billion.
Home sales revenues rose 37% Y/Y to $2.23 billion, and delivered homes were 2,597, up 28%. Net signed contract value increased 35%.
Home sales gross margin was 22.7% versus 21.0% last year. Adjusted home sales gross margin expanded 170 basis points to 25.6%.
Homes in backlog at the end of Q3 were 10,661, up 47% Y/Y.
The operating margin was 12.4%, and operating income for the quarter rose 84.9% to $276.7 million.
The company held $946 million in cash and equivalents as of July 31, 2021.
EPS of $1.87 beat the analyst consensus of $1.54.
Outlook: Toll Brothers sees Q4 Deliveries of 3,450 units and an adjusted home sales gross margin of 25.6%.
For FY21, Toll Brothers expects Deliveries of 10,100 units and an adjusted home sales gross margin of 24.9%.
Price Action: TOL shares are trading higher by 3.73% at $63.315 on the last check Wednesday.

Momentum23.13

Growth67.15

Quality55.03

Value90.83

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