Why Toll Brothers Stock Is Falling After Earnings
Toll Brothers stock is lower Wednesday after the homebuilder missed expectations for its first quarter. Here's what you need to know.


Toll Brothers (TOL) stock is lower Wednesday after the homebuilder came up short of top- and bottom-line expectations for its first quarter.
In the three months ending January 31, Toll Brothers' home sales revenue decreased 4.7% year over year to $1.84 billion. Earnings per share (EPS) declined 22.2% from the year-ago period to $1.75.
"While demand was solid in our first quarter, we have seen mixed results so far this spring selling season," said Toll Brothers CEO Douglas C. Yearley said.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Demand remains healthy "particularly at the higher end" of Toll Brothers' market, though Yearley added that "affordability constraints and growing inventories in certain markets are pressuring sales—especially at the lower end."
The CEO noted in his statement that EPS and net income were impacted by "impairments and a delay in the sale of a stabilized apartment property in one of our joint ventures."
The results missed analysts' expectations. Wall Street was anticipating revenue of $1.91 billion and earnings of $2.04 per share, according to CNBC.
Toll Brothers said that home deliveries came in at 1,991 in the quarter, which also fell short of expectations of 2,060 homes.
For its second quarter, Toll Brothers said it expects home deliveries of 2,500 to 2,700 units at an average delivered price per home of $940,000 to $960,000. It also maintained its full-year forecast of home deliveries of 11,200 to 11,600 units at an average price of $945,000 to $965,000.
"We believe the long-term outlook for the new home market remains very positive and continues to be supported by strong fundamentals," Yearley said.
Is TOL stock a buy, sell or hold?
Toll Brothers stock generated a total return of 23.5% in 2024, only slightly underperforming the S&P 500's 25% gain. And its stock buyback program remains on track. It's down for the year to date, but Wall Street is bullish on the homebuilder.
According to S&P Global Market Intelligence, the average analyst target price for TOL stock is $155.77, representing implied upside of nearly 35% to current levels. And the consensus recommendation is Buy.
Financial services firm Oppenheimer maintained its Outperform rating (equivalent to a Buy) and its $189 price target on TOL stock following the earnings release.
"The core homebuilding business performed mostly as we expected. Gross margin was a positive highlight, though orders missed our model by 124 homes (or 5%)," Oppenheimer analyst Tyler Batory said in a note.
The analyst explained that the earnings miss "was due to impairments and a delay of the sale of an apartment property" and highlighted the fact that "TOL reaffirmed all key homebuilding guidance metrics for the full year."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
How to Navigate Your Medicare Advantage Plan in a Disaster
If you're a Medicare Advantage member in an area that has been impacted by a disaster, you might be worried about access to care and medicine. Here's what you need to know.
-
Older Investors: Boost Your Savings and Retire Earlier
This one measure can help older investors retire up to two years earlier and potentially double their retirement savings.
-
I'm a Financial Adviser: This Is How You Could Be Leaving Six Figures in Social Security on the Table
Claiming Social Security is about more than filing paperwork and expecting a check. When you do it and how you do it have huge financial implications that last the rest of your life.
-
The Big Pause: Why Are So Many Americans Afraid to Retire?
While new research sheds light on Americans' growing reluctance to quit work in later life, can anything be done to help those with the retirement jitters?
-
Five Under-the-Radar Shifts Investors and Job Seekers Can't Afford to Ignore Under the OBBB
Beyond the headlines: The new tax law's true impact for job seekers and investors lies in how it will transform industries and create opportunities in areas such as regional accounting, AI and outsourced business services.
-
5 Popular Investing Strategies You Should Really Rethink
There are plenty of popular sayings that help guide your investing strategies, but which ones work? We turned to the experts and historical data to find out.
-
I'm a Financial Professional: It's Time to Stop Planning Your Retirement Like It's 1995
Today's retirement isn't the same as in your parents' day. You need to be prepared for a much longer time frame and make a plan with purpose in mind.
-
An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't Work
When did you last review your will? Before kids? Before a big move? An update is essential, but regular reviews are even better. Here's why.
-
Nasdaq Ends the Week at a New High: Stock Market Today
The S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
-
For a Richer Retirement, Follow These Five Golden Rules
These Golden Rules of Retirement Planning, developed by a financial pro with many years of experience, can help you build a plan that delivers increased income and liquid savings while also reducing risk.