Taylor Morrison Home Corporation announced robust third quarter 2024 results, with diluted earnings per share increasing 54% year-over-year to $2.37. Total revenue for the quarter reached $2.12 billion, marking a 26.6% increase compared to the prior-year period. Home closings revenue also saw a significant rise of 25.9% to $2.03 billion, driven by a 28.6% increase in homes closed to 3,394 units.
The company achieved a home closings gross margin of 24.8%, an improvement of 170 basis points from 23.1% in the third quarter of 2023. Net sales orders increased by 9% to 2,830, supported by a monthly absorption pace of 2.8 per community and a reduced cancellation rate of 9.3% of gross orders. SG&A as a percentage of home closings revenue decreased to 9.8%, demonstrating operational efficiency.
Taylor Morrison maintained a strong financial position with $1.2 billion in total liquidity and a net homebuilding debt-to-capital ratio of 22.5%. The company repurchased $61 million in shares during the quarter, bringing the year-to-date total to $258 million. Subsequent to the quarter end, the Board of Directors authorized an expanded share repurchase program of up to $1 billion, signaling a strong commitment to returning capital to shareholders.
Looking ahead, Taylor Morrison provided guidance for the fourth quarter of 2024, expecting approximately 3,400 home closings at an average price of $610,000, with a home closings gross margin around 24.5%. For the full year 2024, the company anticipates approximately 12,725 home closings at an average price of $600,000, with a gross margin of about 24.3% and total share repurchases of approximately $300 million.
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