The upcoming report from Toll Brothers (TOL) is expected to reveal quarterly earnings of $3.59 per share, indicating a decline of 0.3% compared to the year-ago period. Analysts forecast revenues of $2.85 billion, representing an increase of 4.6% year over year.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Toll Brothers metrics that Wall Street analysts commonly model and monitor.
Analysts predict that the 'Revenues- Home Sales' will reach $2.84 billion. The estimate indicates a year-over-year change of +4.4%.
The consensus among analysts is that 'Revenues- Land sales' will reach $16.34 million. The estimate indicates a change of +370.6% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Closed/Delivered - Units' of 2,919 . The estimate is in contrast to the year-ago figure of 2,814 .
Based on the collective assessment of analysts, 'Backlog - Units' should arrive at 5,795 . The estimate is in contrast to the year-ago figure of 6,769 .
Analysts forecast 'Average delivered price (Total Average Price Per Unit)' to reach $973.32 . Compared to the present estimate, the company reported $968.20 in the same quarter last year.
Analysts expect 'Net contracts - Units' to come in at 2,651 . The estimate is in contrast to the year-ago figure of 2,490 .
The average prediction of analysts places 'Number of Selling Communities' at 430 . Compared to the present estimate, the company reported 404 in the same quarter last year.
Analysts' assessment points toward 'Average Backlog Price' reaching $1125.97 . The estimate is in contrast to the year-ago figure of $1044.00 .
The combined assessment of analysts suggests that 'Backlog - Value' will likely reach $6.44 billion. Compared to the current estimate, the company reported $7.07 billion in the same quarter of the previous year.
The consensus estimate for 'Gross Margin- Home sales' stands at $734.13 million. Compared to the present estimate, the company reported $747.31 million in the same quarter last year.
View all Key Company Metrics for Toll Brothers here>>>
Over the past month, Toll Brothers shares have recorded returns of +14.2% versus the Zacks S&P 500 composite's +3.5% change. Based on its Zacks Rank #3 (Hold), TOL will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Toll Brothers Inc. (TOL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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