CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Taylor Morrison's Q1 revenue of $1.387B beat consensus, led by higher-than-guided volume of 2,268 closings, though offset by a lower ASP of $578K, reflecting strategic spec inventory focus. Adjusted EPS of $1.12 significantly beat consensus' $0.84 by 33%, with gross margin of 20.6% exceeding management's ~20% guidance while reducing finished spec inventory by 30% and lowering incentives sequentially by over 100 bps. Net orders of 2,914 outpaced closings, rebuilding backlog 23% sequentially to 3,465 homes, with higher-margin to-be-built mix jumping to 38% from 28%, supporting the strategic pivot toward profitability. Management reaffirmed full-year targets of ~11K closings and mid-10% SG&A ratio, with Q2 guidance of 2,500-2,600 closings and 20% gross margin floor. We think the Q1 performance slightly de-risks the remainder of the year and supports the "setup year" narrative for 2027 growth positioning. While net orders declined 14% Y/Y, offset by 2% ASP appreciation, we view margin progression as key.