Taylor Morrison Home Corporation (TMHC, Financial) has reported a notable performance in its first-quarter financial results, surpassing market expectations. The company achieved a revenue of $1.9 billion, beating the consensus estimate of $1.81 billion. This impressive outcome was primarily driven by delivering 3,048 homes at an average price point of $600,000.
These home sales contributed $1.8 billion in home closings revenue, marking a 12% increase compared to the previous year. Additionally, the adjusted home closings gross margin rose to 24.8%, which is an improvement of 80 basis points year-over-year. Taylor Morrison also experienced an enhancement in its scale with a 70 basis point improvement in selling, general, and administrative (SG&A) leverage.
Notably, the company's adjusted earnings per diluted share saw a significant increase of 25%, while the book value per share rose by 16% to approximately $58. Taylor Morrison's diversified consumer and product strategy has been a crucial factor in achieving these robust results, particularly in the face of a fluctuating market environment.
CEO and Chairman Sheryl Palmer emphasized the advantages of this diversified approach, which has contributed to the company's success in maintaining volume and margin stability despite market volatility. All operational metrics either met or exceeded the company's prior guidance, reflecting Taylor Morrison's strategic strengths in the current economic landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Taylor Morrison Home Corp (TMHC, Financial) is $72.89 with a high estimate of $85.00 and a low estimate of $55.00. The average target implies an upside of 23.98% from the current price of $58.79. More detailed estimate data can be found on the Taylor Morrison Home Corp (TMHC) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Taylor Morrison Home Corp's (TMHC, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Taylor Morrison Home Corp (TMHC, Financial) in one year is $48.49, suggesting a downside of 17.52% from the current price of $58.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Taylor Morrison Home Corp (TMHC) Summary page.
