Toll Brothers (TOL), a leading luxury homebuilder, saw its stock price surge 5.25% in after-hours trading on Tuesday following the release of its fiscal 2025 second-quarter results that significantly exceeded analyst expectations.

The company reported quarterly earnings of $3.50 per share, surpassing the consensus estimate of $2.92 by 19.86%. This represents a 3.55% increase from the same period last year. Revenue for the quarter came in at $2.71 billion, beating analyst projections of $2.48 billion by 9.11%, despite a 4.51% year-over-year decrease.

Toll Brothers' strong performance was underscored by its pretax profit of $477.5 million and operating income of $449.7 million, both of which outpaced analyst estimates. The company also reaffirmed its full-year guidance, projecting deliveries of 11,200 to 11,600 units for the fiscal year. This positive outlook, combined with the robust quarterly results, appears to have boosted investor confidence in the luxury homebuilder's prospects amid a challenging housing market environment.