Toll Brothers TOL and D.R. Horton DHI are two leading U.S. homebuilders with distinct market focuses.
Ahead of today's biggest market news item — the Fed rate cut, expected at 1pm ET today — we see an economic segment directly affected by interest rates, Housing. As we'll see, the homebuilding side of the housing market continues to cool down — clearly a result of still-high interest rates, which translate to high mortgage rates.
Toll Brothers faces margin pressure as rising incentives weigh on earnings, even as luxury pricing offers some cushion.
TOL shifts to a 50% spec-home mix, aiming for speed and flexibility without compromising luxury margins.
As a leading luxury homebuilder, Toll Brothers (TOL) stock has seen a sharp rebound with the company benefiting from a more affluent customer base that's less sensitive to interest rates.
Toll Brothers NYSE: TOL is an excellent buy-and-hold stock, but there are risks for its share price and investors in 2025. The stock is a great buy and hold because of its operational quality, cash flow, capital return, and long-term supply-demand outlook.
TOL tops Q3 estimates with record revenues. However, margins and backlog remain under pressure.
Toll Brothers, Inc. (NYSE:TOL ) Q3 2025 Earnings Conference Call August 20, 2025 8:30 AM ET Company Participants Douglas C. Yearley - Chairman & CEO Gregg L.
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Toll Brothers' Q3 results beat expectations, due to strong cost controls, but housing demand remains tepid and backlog is declining. The company is well-positioned in the luxury segment, but regional weakness, especially in the South, and softening margins are concerns. Despite a strong balance sheet and continued buybacks, deliveries are outpacing new orders, signaling likely earnings declines next year.
While the top- and bottom-line numbers for Toll Brothers (TOL) give a sense of how the business performed in the quarter ended July 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Toll Brothers (TOL) came out with quarterly earnings of $3.73 per share, beating the Zacks Consensus Estimate of $3.59 per share. This compares to earnings of $3.6 per share a year ago.