Toll Brothers, Inc. (NYSE:TOL) is a prominent home construction company in the United States, known for its luxury homes. As the company prepares to release its quarterly earnings on May 20, 2025, Wall Street analysts have set their expectations for an earnings per share (EPS) of $2.86 and projected revenue of approximately $2.49 billion. The anticipated EPS of $2.86 for the quarter ending April 2025 represents a 15.4% decline from the same period last year, as highlighted by Zacks Investment Research. This decline is attributed to a decrease in revenue, which is expected to reach $2.49 billion, marking an 11.8% drop from the previous year.
Despite these challenges, the consensus EPS estimate has remained stable over the past month, indicating that analysts have not revised their projections. The fair value of the company’s equity is estimated at $200 per share, suggesting an 85% upside potential from its current market price of $108. This positions Toll Brothers as an attractive investment opportunity for shareholders.
The company’s financial metrics further highlight its potential. With a price-to-earnings (P/E) ratio of approximately 7.11, Toll Brothers is valued relatively low compared to its earnings. Its price-to-sales ratio of about 0.98 and enterprise value to sales ratio of around 1.20 reflect its market value in relation to sales. Additionally, the company maintains a strong current ratio of about 4.24, indicating good short-term financial health and liquidity.
As the earnings report approaches, the market is closely monitoring how Toll Brothers’ actual results will compare to these estimates. The management’s discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations. If Toll Brothers exceeds expectations, the stock might see an increase, while falling short could lead to a decline.