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Toll Brothers Shares Soar Afterhours On Solid Q2 Results Beat

Published 24/05/2022, 22:11
Updated 24/05/2022, 23:11
© Reuters.  Toll Brothers Shares Soar Afterhours On Solid Q2 Results Beat

© Reuters. Toll Brothers Shares Soar Afterhours On Solid Q2 Results Beat

  • Toll Brothers Inc (NYSE: TOL) reported second-quarter revenue increased by 18% year-over-year to $2.28 billion, beating the consensus of $2.06 billion. EPS was $1.85, above the consensus of $1.54.
  • The gross margin of home sales improved to 24.1% from 21.9% in 2Q21. The adjusted margin was 26.1% versus 24.4%.
  • The operating income increased by 52.8% to $281.66 million, and the margin expanded by 281 bps to 12.4%. SG&A, as a percentage of home sales revenues, was 11.1%, compared to 11.9% in 2Q21.
  • The net signed contract value was $3.1 billion, up 1% Y/Y, and contracted homes were 2,874, down 18%. Backlog value was $11.7 billion, up 35% Y/Y; homes in backlog were 11,768, up 16% Y/Y.
  • Buyback: During the quarter, TOL repurchased ~2.2 million shares at an average price of $48.30 per share for ~$106.5 million. The board refreshed the authorization for repurchase by up to 20 million shares — or ~$900 million at the current market price.
  • The company ended the quarter with ~$535 million in cash and cash equivalents. Q2’s debt-to-capital ratio was 33.1%, compared to 31.9% in 2Q21.
  • 3Q22 Outlook: Toll Brothers expects Deliveries of 2,750 units, with an Average Delivered Price per Home of $895,000 -$915,000.
  • It expects Adjusted Home Sales Gross Margin of 27% and SG&A, as a Percentage of Home Sales Revenues, of 10.5%.
  • FY22 Outlook: The company expects Deliveries of 11,000 -11,500 units, with an Average Delivered Price per Home of $890,000 -$910,000. It expects Adjusted Home Sales Gross Margin of 27.5% and SG&A, as a Percentage of Home Sales Revenues, of 10.4%.
  • Price Action: TOL shares are trading higher by 5.19% at $46.85 during the post-market session on Tuesday.
  • Photo via Flickr
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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