Toll Brothers (TOL) to Report Q2 Earnings: What's in Store?

Toll Brothers Inc. TOLis set to report second-quarter fiscal 2018 results on May 22, before the opening bell. The company delivered a positive earnings surprise in the last reported quarter and surpassed the Zacks Consensus Estimate by an average of 15.17% in the trailing four quarters.

Toll Brothers mostly caters to the luxury move-up buyers, who already possess a residence and are looking to shift to larger homes.

These homebuyers are less sensitive to price changes. Thus, it enjoys an edge over other homebuilding companies, thereby resulting in strong earnings, revenues, contracts and backlog growth. Notably, the lack of competition in the luxury new home market proves beneficial for Toll Brothers.