Toll Brothers reports Q4 EPS $4.11, consensus $3.72

Reports Q4 revenue $2.95B, consensus $2.77B. Backlog value was $6.95B. Douglas Yearley, chairman and chief executive officer, stated: “Fiscal 2023 was exceptional for Toll Brothers, as we delivered another year of record results. We generated $9.9 billion of home sales revenues and increased earnings per share by 13% to $12.36 – driven by a 120-basis point increase in adjusted gross margin to 28.7% and a 90-basis point decrease in SG&A expense to 9.2%. Our fourth quarter results were equally strong. We delivered 2,755 homes and $2.95 billion in home sales revenues – $211 million above the midpoint of our guidance. Our adjusted gross margin in the quarter was 29.1% and our SG&A margin was 8.2%, both of which beat guidance by 60 basis points, and we earned $4.11 per diluted share. At year end, our book value per share was $65.49 and we generated a return on beginning equity of 22.8% for the year. Our business is operating at a very high level, and I thank the entire Toll Brothers team for their contributions to our strong performance.”