The stock was falling 4.72% to $36.54 a share in premarket trading.
Fiscal second-quarter earnings were 87 cents a share, beating Wall Street's estimates by 10 cents and ahead of year-earlier earnings of 79 cents. Revenue was $1.72 billion, beating analysts' expectations of $1.55 billion. Homebuilding deliveries rose 1% year over year to 1,911.
"We are encouraged by the improvement in demand as the quarter progressed," said Douglas Yearley, chairman and CEO. "FY 2019's April contracts surpassed FY 2018's April on both a gross and per-community basis. Although the Spring selling season bloomed late, it built momentum. We view this as a positive sign for the overall health of the new home market."
Toll guided for third-quarter deliveries of between 1,800 and 2,000, short of analysts' expectations of 2,128. Average selling price was expected at between $855,000 and $880,000, weak compared with estimates of $878,000.
Fiscal 2019 deliveries were forecast at 7,700 to 8,100, short of expectations of 8,025. The company guided for average selling prices for the year similar to the third quarter and short of expectations of $884,000.
The stock was up 14.6% for the year coming into Wednesday.