Taylor Morrison Q1 2023 Earnings Report
Key Takeaways
Taylor Morrison reported a net income of $191 million, or $1.74 per diluted share, for the first quarter of 2023. The company's performance was driven by a strong home closings gross margin of 23.9% and an efficient SG&A ratio of 9.9%. Positive sales momentum accelerated into March, resulting in a healthy monthly pace of 3.4 gross sales orders per community.
Home closings declined 8% to 2,541 homes, generating revenue of $1.6 billion.
Home closings gross margin improved 80 basis points to 23.9%.
Net sales orders declined 7% to 2,854, representing a monthly absorption pace of 2.9 per community.
Total available liquidity was approximately $2.0 billion.
Taylor Morrison
Taylor Morrison
Taylor Morrison Revenue by Segment
Forward Guidance
Taylor Morrison provided guidance for the second quarter and full year of 2023.
Positive Outlook
- Home closings are expected to be between 2,600 to 2,700 for Q2 2023.
- Average closing price is expected to be between $630,000 to $635,000 for Q2 2023.
- GAAP home closings gross margin is expected to be between 23.0 to 23.5 percent for Q2 2023.
- Ending active community count is expected to be between 320 to 325 for Q2 2023.
- Homebuilding land and development spend is expected to be around $1.6 billion for FY 2023.
Challenges Ahead
- Home closings are expected to be between 10,000 to 11,000 for FY 2023.
- Average closing price is expected to be around $625,000 for FY 2023.
- GAAP home closings gross margin is expected to be approximately 23.0 percent for FY 2023.
- SG&A as a percentage of home closings revenue is expected to be in the high-nine percent range for FY 2023.
- Effective tax rate is expected to be approximately 25 percent for FY 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income