Taylor Morrison Home (TMHC) Q3 Earnings and Revenues Beat Estimates

Core Insights - Taylor Morrison Home (TMHC) reported quarterly earnings of $2.11 per share, exceeding the Zacks Consensus Estimate of $1.93 per share, but down from $2.37 per share a year ago, resulting in an earnings surprise of +9.33% [1] - The company achieved revenues of $2.1 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.76%, although this is a slight decrease from $2.12 billion in the same quarter last year [2] - Taylor Morrison has consistently surpassed consensus EPS estimates over the last four quarters, indicating a strong performance trend [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.18 on revenues of $2.16 billion, while for the current fiscal year, the estimate is $8.01 on revenues of $8.09 billion [7] - The company's earnings outlook is crucial for investors, as it reflects current consensus expectations and any recent changes in those expectations [4] Market Performance - Taylor Morrison shares have increased by approximately 2.3% since the beginning of the year, in contrast to the S&P 500's gain of 14.5%, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting it is expected to underperform the market in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Building Products - Home Builders industry, to which Taylor Morrison belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, which may negatively impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of monitoring these revisions for investment decisions [5]