NYSE$TOL

Toll Brothers Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Toll Brothers reported strong first quarter results driven by a robust housing market, increased demand, and strategic execution.

Toll Brothers reported a strong first quarter with significant increases in net income, earnings per share, contract value, and backlog value. The company also repurchased shares and repaid debt, reflecting financial strength and flexibility.

  • Net income increased to $96.5 million, or $0.76 per share diluted, compared to $56.9 million, or $0.41 per share diluted, in the prior year's first quarter.
  • Net signed contract value rose by 68% to $2.51 billion, with a 59% increase in contracted homes to 2,874 units.
  • Backlog value grew by 37% to $7.47 billion, and homes in backlog increased by 38% to 8,888 units.
  • The company repurchased approximately 4.0 million shares for $179.4 million and voluntarily repaid $150.0 million of its senior unsecured bank term loan.

Headline financials

Total Revenue

$1.56B

Previous: $1.33B+17.4%
EPS (adj)

$0.76

Previous: $0.41+85.4%
Net signed contracts value

$2.51B

Previous: $1.49B+68.5%
Net signed contracts units

2.9K

Previous: 1.8K+59.1%
Backlog value

$7.47B

Previous: $5.45B+37.1%
Backlog units

8.9K

Previous: 6.5K+37.6%
Deliveries

1.8K

Previous: 1.6K+10.3%
Capital Expenditures

$14.5M

Previous: -$26.8M+154.0%
Free Cash Flow

$40.8M

Previous: -$257M+115.9%
Net Income

$96.5M

Previous: $56.9M+69.7%
Operating Income

$119M

Previous: $47.5M+150.8%
Gross Profit

$330M

Previous: $239M+37.9%
Cash & Equivalents

$950M

Previous: $520M+82.7%
Total Assets

$10.9B

Previous: $10.6B+2.6%
Stock-Based Comp

$12.8M

Previous: $13.4M-4.1%

Revenue & EPS history

Toll Brothers · Revenue · Quarterly

$1.56B

Q1 2021+17.4%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Toll Brothers · $1.4B total across 5 segments · Q1 2021

  • Mountain
    $378M+43.7%
  • Pacific
    $331M-16.2%
  • North
    $313M+23.0%
  • South
    $217M+18.1%
  • Mid-Atlantic
    $164M+0.9%

Forward guidance

The company provided guidance for the second quarter and full fiscal year 2021, including projections for deliveries, average prices, gross margins, and SG&A expenses.

Tailwinds

  • Second quarter deliveries of approximately 2,175 homes with an average price of between $785,000 and $805,000.
  • FY 2021 deliveries of between 10,000 and 10,400 homes with an average price of between $790,000 and $810,000.
  • Second quarter adjusted home sales gross margin of approximately 23.4%.
  • FY 2021 adjusted home sales gross margin of approximately 24.3%.
  • Second quarter SG&A, as a percentage of home sales revenues, of approximately 13.0%.

Headwinds

  • Delivery guidance for the second quarter reflects the slower COVID-19 impacted sales environment of mid-March through May 2020.
  • The Company expects to incur a pre-tax charge of approximately $33 million in the second quarter for the early extinguishment of debt.
  • Second quarter other income, income from unconsolidated entities, and land sales and other gross profit of approximately $7 million.
  • FY 2021 other income, income from unconsolidated entities, and land sales and other gross profit of approximately $80 million.
  • Second quarter tax rate of approximately 26.0%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.2%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-1.3%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+10.5%

Q3 2018

Best reaction

-19.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+9.9%
Q1 2026-2.5%-3.3%-19.4%
Q4 2025-2.4%+2.2%-0.5%
Q3 2025-0.7%+4.9%+5.7%
Q2 2025-0.4%-0.2%+3.6%
Q1 2025-5.9%-9.4%-13.0%
Q4 2024-5.5%-13.1%-17.6%
Q3 2024+5.5%+11.3%+14.6%
Q2 2024-9.0%-6.2%-11.7%
Q1 2024+5.3%+8.9%+23.8%
Q4 2023+1.9%+6.5%+13.2%
Q3 2023+5.1%+3.1%-1.9%
Q2 2023+0.6%+5.2%+17.2%
Q1 2023+0.5%+2.0%+1.9%
Q4 2022+5.6%+4.0%+11.3%
Q3 2022+1.5%+1.3%-7.6%
Q2 2022+2.9%+9.4%-4.9%
Q1 2022-9.4%-0.8%-8.4%
Q4 2021+2.3%+5.3%-3.2%
Q3 2021+7.2%+8.5%+0.9%
Q2 2021+6.3%+7.7%-6.1%
Q1 2021+4.3%-0.4%+4.8%
Q4 2020-5.4%-7.3%-11.6%
Q3 2020-1.3%-6.0%+3.9%
Q2 2020+7.0%+6.7%-2.7%
Q1 2020-19.5%-21.2%-52.9%
Q4 2019-3.6%-2.8%+1.1%
Q3 2019-3.2%-4.0%+7.5%
Q2 2019-2.4%-3.2%-0.2%
Q1 2019-2.6%-5.0%-2.4%
Q4 2018-1.0%-1.2%-1.0%
Q3 2018+10.5%+6.6%+3.3%
Q2 2018-8.5%-6.6%-14.3%
Q1 2018-7.8%-7.6%-9.0%
Q4 2017-7.9%-5.5%-1.0%
Q3 2017-2.0%-1.3%+4.1%
Q2 2017-0.2%-1.7%+2.3%
Q1 2017+6.2%+7.5%+12.1%
Q4 2016+7.0%+5.6%+4.6%
Q3 2016+5.8%+4.8%-0.4%
Q2 2016+7.3%+7.6%+1.8%
Q1 2016+3.1%
Q4 2015-9.8%
Q3 2015-5.5%
Q2 2015-1.4%
Q1 2015+3.8%
Q4 2014-7.6%
Q3 2014-5.4%
Q2 2014+2.1%
Q1 2014+1.5%
Q4 2013-2.4%
Q3 2013+2.6%
Q2 2013+4.4%
Q1 2013-6.6%
Q4 2012-5.6%
Q3 2012+2.5%
Q2 2012+2.1%
Q1 2012+1.3%
Q4 2011-2.7%
Q3 2011+0.2%
Q2 2011-2.0%
Q1 2010+2.8%
Q1 2011+1.6%
Q2 2010-0.2%
Q4 2008-0.2%
Q3 2010+1.6%
Q3 2009+1.6%
Q4 2009+1.6%

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