Toll Brothers (NYSE:TOL) fell nearly 7% intra-day today after the luxury homebuilder reported weaker-than-expected first-quarter earnings, with revenue and profit missing analyst projections.
For the quarter, earnings per share came in at $1.75, below the $2.04 consensus estimate. Revenue reached $1.86 billion, falling short of Wall Street’s $1.91 billion forecast.
Despite a 3% year-over-year increase in home deliveries to 1,991 units, the average home price dropped 7.8% to $924,600, reflecting pricing pressures in certain markets.
Toll Brothers’ CEO noted that while demand remained solid, the spring selling season has been mixed, with affordability constraints and growing inventories in some markets dampening sales—particularly at lower price points. However, the company emphasized continued strength in high-end markets.
The homebuilder maintained its full-year outlook, expecting to deliver between 11,200 and 11,600 homes at an average price of $945,000 to $965,000, signaling confidence in stabilizing demand despite market fluctuations.