Taylor Morrison Home Corporation (NYSE:TMHC) shares climbed 5.43% in premarket trading on Wednesday after the homebuilder posted third-quarter results that beat earnings expectations, showcasing resilience in a challenging housing environment.
The company reported adjusted earnings of $2.11 per share for the quarter ended September 30, topping the analyst consensus of $1.92. Revenue came in at $2 billion, just shy of the $2.03 billion estimate, but still reflecting solid performance despite market pressures.
Home closings slipped 2.1% year-over-year to 3,324 units, while the average closing price edged up 0.7% to $602,000. The adjusted home closings gross margin stood at 22.4%, above guidance but down from 25% in the same quarter last year.
“We are pleased to report strong third quarter results despite the continuation of challenging market conditions,” said Sheryl Palmer, Taylor Morrison CEO and Chairman. “Driven by our diversified portfolio and team’s careful calibration of inventory, pricing and pace across our well-located communities, we once again met or exceeded our guidance on all key metrics.”
Net sales orders fell 12.8% to 2,468 homes, highlighting ongoing affordability challenges. However, the company noted that absorption rates improved steadily throughout the quarter as mortgage rates eased.
Taylor Morrison revised its full-year home closings outlook to a range of 12,800–13,000 units, down from 13,000–13,500 previously. The company ended the quarter with $1.3 billion in liquidity and repurchased 1.3 million shares for $75 million.
The results underscore how strategic pricing, tight inventory control, and disciplined cost management have helped the homebuilder weather a difficult housing cycle.