Taylor Morrison Home Corporation: Initiation of Coverage – A Shift Towards Affordable Housing Benefiting Them Immensely?

Taylor Morrison’s Second Quarter 2024 Earnings Conference call highlighted a mixed performance amid
varied market conditions. On the positive side, the company saw a commendable delivery of 3,200 homes
at an average price of $600,000, with an adjusted home closings gross margin of 23.9%. The financial
results exceeded prior guidance, with adjusted earnings per share hitting $1.97 and a 12% year-on-year
growth in book value per share to approximately $52. Significantly, Taylor Morrison raised its home delivery
forecast for the year to between 12,600 and 12,800 homes, exceeding previous estimates. The company
also maintained a stable closings volume and healthy gross margins despite ongoing challenges posed by
higher interest rates, thanks to its diversified consumer base and geographic footprint.