Luxury homebuilder Toll Brothers (NYSE:TOL) could show strength in homebuilder stocks when the company reports third-quarter financial results Tuesday after market close.
Here are the earnings estimates and key items to watch in the quarterly financial results.
Earnings Estimates: Analysts expect Toll Brothers to report third-quarter revenue of $2.85 billion, up from $2.73 billion in last year's third quarter, according to data from Benzinga Pro.
The company beat analyst estimates in the second quarter and has beaten analyst estimates in nine of the last 10 quarters overall.
Analysts expect Toll Brothers to report third-quarter earnings per share of $3.60, in line with $3.60 in last year's third quarter. The company beat analyst estimates for earnings per share in the second quarter and has beaten analyst estimates in eight of the last 10 quarters overall.
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Key Items to Watch: The report from Toll Brothers comes with the housing sector continuing to be a hot topic for investors.
New home sales have been dropping in recent months. Meanwhile, investors and homebuyers anticipate rate cuts later this year and pent-up demand for home purchases coming in the second half of the year or in 2026.
Toll Brothers' earnings report also comes with one of the most famous investors of all time raising the stakes in the sector.
Warren Buffett recently unveiled new investments in the homebuilder sector via Berkshire Hathaway Inc's (NYSE:BRK)(NYSE:BRK) quarterly filing.
In the second quarter, Berkshire Hathaway took the following new stakes in the sector:
Along with the new purchases, Berkshire also increased its stake in Lennar Corporation Class B shares by 19%, the company's second largest position increase by percentage in the quarter.
While Buffett didn't buy Toll Brothers stock directly, there could be a trickle down positive impact for the entire sector with one of the most respected investors in the world betting big on the homebuilder sector.
Investors and analysts will be looking for strength in the company's key metrics for the third quarter, including home sales revenue, delivered homes, net signed contract value and contracted homes.
Toll Brothers had a backlog value of $6.84 billion at the end of the second quarter with 6,063 homes in the backlog, figures that were down 7% and 15% year-over-year, respectively.
TOL Price Action: Toll Brothers stock is up 0.8% to $131.59 on Monday versus a 52-week trading range of $86.67 to $169.52. Toll Brothers stock is up 4.6% year-to-date in 2025.
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