By Connor Hart

Toll Brothers reported lower-than-expected earnings and sales in its fiscal first quarter, sending its stock down in after-hours trading.

Shares were recently trading 5.3% lower at $115.60. The stock--which ended the regular session down 1.3% at $122.05--is down 20% in the past three months, despite being up 19% in the past year.

The Fort Washington, Pa.-based home construction company on Tuesday posted net income of $177.7 million for its three months ended Jan. 31, compared with $239.6 million a year earlier.

Quarterly earnings came in at $1.75 a share, missing the $2.04 that analysts polled by FactSet expected.

Revenue fell 4.6% to $1.86 billion, missing the $1.91 billion that analysts were expecting.

Chief Executive Douglas Yearley said demand was solid in the recent quarter, though he noted the company has experienced mixed results heading into the spring.

"Although demand has remained healthy in many of our markets and particularly at the higher end, affordability constraints and growing inventories in certain markets are pressuring sales--especially at the lower end," he said. "We continue to strategically manage our pricing, incentives and spec starts on a community-by-community basis to best match local selling conditions and to appropriately balance pace and price."

For its fiscal second quarter, Toll guided for deliveries between 2,500 units and 2,700 units, and an average delivered home price of $940,000 to $960,000.

The company backed its fiscal 2025 outlook, forecasting deliveries of 11,200 to 11,600 units, with an average delivered price per home of $945,000 to $965,000.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

February 18, 2025 17:20 ET (22:20 GMT)

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