Citizens has reiterated a Market Outperform rating and $175.00 price target on Toll Brothers (NYSE:TOL) following the homebuilder's strong second-quarter fiscal 2026 results.
The company posted diluted earnings per share of $2.72 for the quarter ended in April, matching Citizens' estimate. Total revenues of $2.5 billion surpassed Citizens' $2.4 billion forecast.
Toll Brothers delivered 2,491 homes, exceeding the forecast of 2,450 closings. The average delivered price of $1.0 million also topped the $980,000 estimate.
GAAP gross margin came in at 23.9%, 10 basis points above Citizens' estimate. SG&A expenses were 10.3% of sales, 40 basis points below the firm's assumption.
Analyst James McCanless noted the earnings beat was driven by both price and volume. Toll Brothers trades at a P/E ratio of 8.89 with a market capitalization of $11.76 billion.
