Toll Brothers Forecasts 11.8% Sales Slide and 24.2% Margins in Q2
Toll Brothers will report Q2 earnings on May 19 after the close, with analysts forecasting an 11.8% drop in sales and a 28.4% decline in earnings. Home sale margins are expected at 24.2% while orders may rise double digits despite a choppy spring housing market and elevated mortgage rates.
1. Earnings Date and Analyst Estimates
Toll Brothers will release second-quarter results after the market close on May 19. Analysts have updated forecasts ahead of the call, projecting key metrics that will guide investor expectations.
2. Projected Sales and Earnings Declines
Analysts expect new home sales to fall by 11.8% year-over-year and earnings per share to drop by 28.4%, reflecting broader headwinds in the homebuilding sector and higher borrowing costs.
3. Margin Outlook
Home sale gross margins are forecast at 24.2%, supported by the company’s focus on luxury homes and a buyer mix that includes a higher share of cash purchasers less sensitive to interest rates.
4. Order Trends and Market Conditions
Despite rate-driven headwinds, orders are projected to grow by double digits year-over-year. However, spring demand has been uneven, suggesting incentives may return to attract rate-averse buyers.