NYSE$TMHC

Taylor Morrison Home Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Taylor Morrison's Q2 2024 performance was marked by solid results, with closings volume and home closings gross margin exceeding expectations, reflecting the strength and stability of its diversified consumer and geographic strategy.

Taylor Morrison reported a net income of $199 million, or $1.86 per diluted share, for the second quarter of 2024. The company's performance was driven by a 3% increase in net sales orders and a home closings revenue of $1.9 billion. Looking ahead, Taylor Morrison expects to deliver between 12,600 to 12,800 homes this year with a home closings gross margin around 24%.

  • Net sales orders increased by 3% to 3,111, driven by a monthly absorption pace of 3.0 per community.
  • Home closings revenue reached $1.9 billion, with 3,200 home closings at an average price of $600,000.
  • Home closings gross margin was 23.8%, or 23.9% on an adjusted basis.
  • The company repurchased 1.7 million common shares for $105 million.

Headline financials

Total Revenue

$1.99B

Previous: $2.06B-3.4%
EPS

$1.86

Previous: $2.12-12.3%
Home Closings

3.2K

No prior period
Average Closing Price

$600K

No prior period
Home Closings Gross Margin

23.8%

No prior period
Adjusted Home Closings Gross Margin

23.9%

No prior period
SG&A % of Closings Rev

10.2%

No prior period
Net Sales Orders

3.1K

No prior period
Monthly Absorption Pace

3

No prior period
Ending Communities

347

No prior period
Cancellation Rate (Gross)

9.4%

No prior period
Cancellation Rate (Backlog)

5.2%

No prior period
Backlog Homes

6.3K

No prior period
Backlog Sales Value

$4.2B

No prior period
Homebuilding Land Investment

$611M

No prior period
Lot Supply

80.7K

No prior period
Controlled Off-BS Lots

57.0%

No prior period
Mortgage Capture Rate

89.0%

No prior period
Gross Debt-to-Cap

25.4%

No prior period
Net Debt-to-Cap

22.8%

No prior period
Capital Expenditures

-$17.4M

Previous: -$21M+17.1%
Free Cash Flow

$182M

Previous: $214M-14.8%
Net Income

$199M

Previous: $235M-15.0%
Operating Income

$276M

Previous: $313M-11.8%
Gross Profit

$472M

Previous: $500M-5.5%
Cash & Equivalents

$247M

Previous: $1.23B-79.9%
Total Assets

$9.1B

Previous: $8.75B+4.0%
Stock-Based Comp

$6.07M

Previous: $5.27M+15.2%

Revenue & EPS history

Taylor Morrison · Revenue · Quarterly

$1.99B

Q2 2024-3.4%vs Q2 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Taylor Morrison provided the following business outlook for the third quarter and full year 2024:

Tailwinds

  • Home closings are expected to be approximately 3,200 in Q3 2024.
  • Average closing price is expected to be around $600,000 in Q3 2024.
  • Home closings gross margin is expected to be around 24% in Q3 2024.
  • Home closings are now expected to be between 12,600 to 12,800 for full year 2024.
  • Home closings gross margin is now expected to be around 24% for full year 2024.

Headwinds

  • Ending active community count is expected to be between 330 to 340 in Q3 2024.
  • Effective tax rate is expected to be approximately 25% in Q3 2024.
  • Diluted share count is expected to be approximately 106 million in Q3 2024.
  • Ending active community count is expected to be between 330 to 340 for full year 2024.
  • Effective tax rate is expected to be approximately 25% for full year 2024.

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 2024

Historical avgQ2 2024

+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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