Toll Brothers Inc. (NYSE:TOL) is a prominent player in the luxury home building industry, known for constructing upscale homes and communities across the United States. Competing with major firms like Lennar Corporation and D.R. Horton, TOL is set to release its quarterly earnings on Tuesday, August 19, 2025.
Wall Street anticipates TOL's earnings per share (EPS) to be $3.59 for the quarter ending July 2025. This figure represents a slight decline of 0.3% compared to the same period last year. Despite this minor drop in EPS, the company's revenue is projected to rise by 4.6% year over year, reaching approximately $2.86 billion. This growth in revenue highlights the company's ability to generate increased sales despite a slight dip in earnings.
Interestingly, there have been no revisions in the consensus EPS estimate for the quarter over the past 30 days. This stability suggests that analysts are confident in their initial projections. As highlighted by Zacks, revisions in earnings estimates often signal potential stock price movements, making this stability a crucial factor for investors.
TOL has recently attracted significant attention from investors, as evidenced by its frequent searches on Zacks.com. Over the past month, the stock has increased by 12.8%, outperforming the Zacks S&P 500 composite, which rose by 3.1%. The Zacks Building Products - Home Builders industry, which includes TOL, experienced an 8.9% gain. This surge in interest and stock performance indicates that investors are closely monitoring the company's potential future direction.
TOL's financial metrics provide further insights into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 9.48, indicating how the market values its earnings. Its price-to-sales ratio stands at about 1.21, reflecting the market's valuation of its revenue. Additionally, TOL's enterprise value to sales ratio is around 1.42, and its enterprise value to operating cash flow ratio is approximately 18.88. These figures offer a comprehensive view of the company's valuation relative to its cash flow and revenue.
