Taylor Morrison Q2 2024 Earnings Report
Key Takeaways
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.
Taylor Morrison
Taylor Morrison
Taylor Morrison Revenue by Segment
Forward Guidance
Taylor Morrison provided the following business outlook for the third quarter and full year 2024:
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income