NYSE$TMHC

Taylor Morrison Home Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Taylor Morrison reported strong Q3 2021 results, with a significant increase in home closings gross margin and backlog.

Taylor Morrison reported a strong third quarter, exceeding expectations in key operating metrics. The company successfully navigated supply-side challenges, closing 3,327 homes with a home closings gross margin of 21.2 percent. Net income increased to $168 million, or $1.34 per diluted share.

  • Home closings gross margin increased 400 basis points to 21.2 percent.
  • Backlog increased 32 percent to 10,273 sold homes with a sales value of $6.1 billion, up 63 percent.
  • Controlled lots as a percentage of total lot supply increased approximately 700 basis points to 36 percent.
  • Homebuilding lot supply increased 15 percent to approximately 78,000 total lots owned and controlled.

Headline financials

Total Revenue

$1.86B

Previous: $1.7B+9.4%
EPS (adj)

$1.34

Previous: $1.01+32.7%
Capital Expenditures

-$15.7M

Previous: -$25.3M+37.9%
Free Cash Flow

$152M

Previous: $89.5M+70.3%
Net Income

$168M

Previous: $115M+46.5%
Operating Income

$225M

Previous: $158M+42.5%
Gross Profit

$392M

Previous: $310M+26.7%
Cash & Equivalents

$373M

Previous: $548M-31.8%
Total Assets

$8.4B

Previous: $7.83B+7.3%
Stock-Based Comp

$4.79M

Previous: $5.27M-9.1%

Revenue & EPS history

Taylor Morrison · Revenue · Quarterly

$1.86B

Q3 2021+9.4%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Taylor Morrison expects positive momentum to continue, driven by synergy realization, operational enhancements and backlog strength. However, due to industry-wide material and labor bottlenecks, the company is adjusting its full-year home closings guidance to around 14,000 homes.

Tailwinds

  • Average active community count is expected to be in line with the third quarter
  • GAAP home closings gross margin is expected to be approximately 21 percent
  • Effective tax rate is expected to be approximately 23.0 percent
  • Diluted share count is expected to be approximately 125 million
  • Net debt-to-capital ratio to decline to the low-30 percent range by the end of 2021 followed by further deleveraging in 2022.

Headwinds

  • Home closings are expected to be approximately 4,600
  • Unprecedented industry-wide material and labor bottlenecks that have intensified in recent months and are unlikely to abate in the foreseeable future
  • Adjusting full-year home closings guidance to around 14,000 homes to reflect timing delays that have pushed some closings into early 2022
  • Effective tax rate is expected to be approximately 23.0 percent
  • Diluted share count is expected to be approximately 128 million

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 Q3 2021

Historical avgQ3 2021

+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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