Toll Brothers Stock (NYSE:TOL) Gains Into Earnings – What To Expect

Toll Brothers stock price (NYSE: TOL) is moving higher into Q3 earnings after the market closes today, up 1.71% on the day. This comes as the nation's leading luxury homebuilder is under scrutiny, with the housing market facing a complex interplay of factors, including fluctuating interest rates and evolving consumer sentiment.

The company will host a conference call on Wednesday, August 20, at 8:30 a.m. ET, where executives are expected to provide detailed insights into the results and address key market trends. The stakes are high, as the luxury housing market is often seen as a bellwether for the broader economy.

Analysts are looking to Toll to deliver an EPS of $3.6, on revenue of $2.86 billion for the quarter. This would represent a 4.76% sales growth rate Y/Y, and a mild drop in EPS from the $3.64 from the same quarter Y/Y.

However, the company's recent performance presents some cause for concern. In the second quarter of 2025, Toll Brothers reported a 3.5% decline in total revenue, falling to $2.74 billion from $2.84 billion in the same period last year. Net income also experienced a significant drop of 26.8%, decreasing to $352.45 million from $481.62 million.

EPS on the period actually came in strongly above estimates, with the $3.53 per share a 22.36% beat on the $2.86 expected.

Toll Brothers also reaffirmed its full-year guidance, projecting deliveries of 2,800 to 3,000 units for the third quarter, with an average home price between $965,000 and $985,000. The company also expects its adjusted home sales gross margin to remain around 27.25%, with selling, general, and administrative (SG&A) expenses projected at approximately 9.2% of home sales revenue.

CEO Douglas C. Yearley, Jr. has expressed optimism, citing strong demand for luxury homes and the company's strategic focus on price and margin. He remains confident in the long-term outlook, emphasizing housing shortages and favorable demographics. Recent announcements regarding new luxury communities in Bellevue, Washington, and Charlotte, North Carolina, further underscore the company's commitment to expansion.

The expected move is around 3.5% off the back of earnings, with the guidance likely to prove pivotal in which direction any variance takes.