NYSE$TMHC

Taylor Morrison Home Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Taylor Morrison reported an increase in net sales orders and total revenue compared to the prior year quarter.

Taylor Morrison reported strong second-quarter results with a 23% increase in net sales orders and a 20% increase in total revenue compared to the prior year quarter. The company's focus on virtual experience and innovative tools has contributed to its strong sales performance.

  • Net sales orders increased by approximately 23% year-over-year.
  • Average monthly sales pace per community tied the highest level for the second quarter in years.
  • Home closings increased by approximately 24% year-over-year.
  • Total revenue increased by more than 20% compared to the prior year quarter.

Headline financials

Total Revenue

$1.53B

Previous: $1.27B+20.6%
EPS (adj)

$0.80

Previous: $0.76+5.3%
Capital Expenditures

-$17.1M

Previous: -$12M-41.8%
Free Cash Flow

$48.6M

Previous: $69.8M-30.4%
Net Income

$65.7M

Previous: $81.9M-19.8%
Operating Income

$80.3M

Previous: $107M-25.1%
Gross Profit

$244M

Previous: $234M+4.5%
Cash & Equivalents

$675M

Previous: $197M+243.3%
Total Assets

$8.32B

Previous: $5.18B+60.7%
Stock-Based Comp

$4.99M

Previous: $3.83M+30.3%

Revenue & EPS history

Taylor Morrison · Revenue · Quarterly

$1.53B

Q2 2020+20.6%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The company provided guidance for the third quarter and full year 2020, including expectations for average active community count, home closings, GAAP home closings gross margin, effective tax rate, and diluted share count.

Tailwinds

  • Average active community count is expected to be about 410 for Q3 2020.
  • Home closings are expected to be between 3,000 and 3,200 for Q3 2020.
  • GAAP home closings gross margin is expected to be in the mid-to-high 16 percent range for Q3 2020.
  • SG&A as a percentage of home closings revenue is expected to be in the low 10 percent range for full year 2020.
  • Land and development spend is expected to be approximately $1.4 billion to $1.5 billion for full year 2020.

Headwinds

  • A debt refinancing charge of $8 million is expected for Q3 2020.
  • Effective tax rate is expected to be about 22 percent for Q3 2020.
  • Effective tax rate is expected to be about 25 percent for full year 2020.
  • GAAP home closings gross margin is expected to be in the low-to-mid 16 percent range for full year 2020.
  • Diluted share count is expected to be about 129 million for full year 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.0%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.0%

Avg return

30 days after

42%

22 / 53 earnings

Positive

+11.5%

Q3 2021

Best reaction

-8.9%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.5%+1.6%-6.4%
Q4 2025-1.1%+3.7%-10.9%
Q3 2025-3.2%-4.4%-2.9%
Q2 2025-1.9%-0.8%+0.5%
Q1 2025-2.0%-2.6%-4.0%
Q4 2024+3.3%+2.9%-5.9%
Q3 2024+5.4%+7.8%+9.6%
Q2 2024-0.6%+2.8%+4.1%
Q1 2024-2.8%-0.9%-1.0%
Q4 2023+7.9%+3.2%+6.4%
Q3 2023-2.8%-3.6%+15.3%
Q2 2023-5.4%-3.2%-11.5%
Q1 2023+4.9%+5.6%+7.9%
Q4 2022+0.6%-0.4%-1.3%
Q3 2022-4.0%-2.6%+8.6%
Q2 2022+4.8%+6.1%-3.0%
Q1 2022-1.5%-1.3%+4.3%
Q4 2021+4.2%-0.5%+4.4%
Q3 2021+11.5%+14.4%+16.5%
Q2 2021+6.3%+8.3%+13.2%
Q1 2021-4.8%-3.8%-9.7%
Q4 2020-0.5%-3.0%-3.2%
Q3 2020-3.4%-3.8%+11.7%
Q2 2020-5.3%-6.5%-1.9%
Q1 2020-0.5%+8.9%+48.4%
Q4 2019-0.5%-1.3%-18.5%
Q3 2019-5.1%-8.6%-12.1%
Q2 2019+2.1%-1.2%+6.4%
Q1 2019+9.8%+6.9%+3.2%
Q4 2018-6.4%-8.4%-10.5%
Q3 2018+2.7%+4.4%+6.9%
Q2 2018-0.9%-0.6%-0.4%
Q1 2018-6.0%-5.6%-10.0%
Q4 2017-1.2%-2.3%-2.2%
Q3 2017-3.3%-2.9%-1.0%
Q2 2017-3.7%-3.7%-12.3%
Q1 2017+2.6%+2.2%+5.1%
Q4 2016-8.9%+0.1%+9.2%
Q3 2016+6.2%+9.5%+17.3%
Q2 2016+5.6%+8.9%+10.8%
Q1 2016-3.8%
Q4 2015+3.7%
Q3 2015-6.3%
Q2 2015+5.4%
Q1 2015+1.0%
Q4 2014-2.8%
Q3 2014+6.3%
Q2 2014-0.6%
Q1 2014+0.3%
Q4 2013+8.1%
Q3 2013-2.0%
Q2 2013-8.8%
Q1 2013-5.4%
Q3 2012
Q2 2012
Q1 2012

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