Street Calls of the Week
SCOTTSDALE - On Wednesday, Taylor Morrison Home Corporation (NYSE:TMHC) reported third-quarter earnings that exceeded analyst expectations, despite challenging market conditions.
The national homebuilder’s shares rose 5.43% in pre-market trading after the announcement.
The company posted adjusted earnings of $2.11 per share for the quarter ended September 30, significantly beating the analyst estimate of $1.92. Revenue came in at $2 billion, slightly below the consensus estimate of $2.03 billion but demonstrating resilience in a difficult housing market.
Home closings declined 2.1% to 3,324 homes compared to the same period last year, while the average closing price increased slightly by 0.7% to $602,000. The company reported an adjusted home closings gross margin of 22.4%, ahead of its guidance but down from 25% in the year-ago quarter.
"We are pleased to report strong third quarter results despite the continuation of challenging market conditions," said Sheryl Palmer, Taylor Morrison CEO and Chairman. "Driven by our diversified portfolio and team’s careful calibration of inventory, pricing and pace across our well-located communities, we once again met or exceeded our guidance on all key metrics."
Net sales orders declined 12.8% to 2,468 homes, reflecting continued affordability challenges in the housing market. However, the company noted that net absorption paces improved each month during the quarter as mortgage rates eased.
Taylor Morrison lowered its full-year home closings guidance to between 12,800 and 13,000 homes, down from its previous forecast of 13,000 to 13,500 homes. The company maintained strong liquidity of $1.3 billion at quarter end and repurchased 1.3 million shares for $75 million during the quarter.
The homebuilder’s performance demonstrates effective navigation of market headwinds through strategic pricing, inventory management, and cost controls.
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