TMHC - Taylor Morrison Home Corporation beats Q2 top and bottom line estimates; initiates Q3 and updates FY23 outlook

2023-07-26 06:20:11 ET

• Taylor Morrison Home Corporation press release ( NYSE: TMHC ): Q2 GAAP EPS of $2.12 beats by $0.45 .
• Revenue of $2.06B (+3.0% Y/Y) beats by $340M .
• Closings increased 3% to 3,125 homes at an average price of $639,000, which generated home closings revenue of $2.0 billion.
• Home closings gross margin declined 240 basis points year over year but increased 30 basis points sequentially to 24.2%.
• Net sales orders increased 18% to 3,023, driven by a monthly absorption pace of 3.1 per community versus 2.6 a year ago.
• Ended the quarter with approximately 72,000 homebuilding lots owned and controlled, representing 5.8 years of total supply, of which 3.3 years was owned.
• Total liquidity reached an all-time high of $2.3 billion.
• Homebuilding debt-to-capitalization declined to 29.7% on a gross basis and 15.4% net of $1.2 billion of unrestricted cash.
• Book value per share increased 30% to $45.96.
• Business Outlook: Third Quarter 2023 : Home closings are expected to be approximately 2,600
• Average closing price is expected to be around $615,000
• GAAP home closings gross margin is expected to be approximately 23.0%
• Ending active community count is expected to be between 320 to 325
• Effective tax rate is expected to be approximately 25%
• Diluted share count is expected to be approximately 111 million
• Full Year 2023 outlook: Home closings are now expected to be approximately 11,000.
• Average closing price is expected to be around $625,000.
• GAAP home closings gross margin is now expected to be approximately 23.5%.
• SG&A as a percentage of home closings revenue is expected to be in the high-9% range.
• Ending active community count is expected to be between 320 to 325.
• Effective tax rate is expected to be approximately 25%.
• Diluted share count is now expected to be approximately 111 million.
• Homebuilding land and development spend is now expected to be around $1.8 billion.

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