Shares of Taylor Morrison Home Corporation (TMHC) surged 5.43% in pre-market trading on Wednesday, following the release of the company's impressive third-quarter 2025 financial results. The homebuilder reported earnings that surpassed analysts' expectations, demonstrating resilience in a challenging housing market.
Taylor Morrison's adjusted earnings per share (EPS) for Q3 came in at $2.11, significantly beating the IBES estimate of $1.95. The company's adjusted net income reached $211 million, outperforming the expected $194.6 million. Home closings revenue also exceeded projections, totaling $2,000.909 million compared to the estimated $1,993 million.
Despite a slight year-over-year decrease in total revenue to $2.10 billion, Taylor Morrison's ability to surpass market expectations has clearly impressed investors. The company's strong performance amid ongoing challenges in the housing sector, including high mortgage rates and affordability concerns, suggests effective management and operational efficiency. Additionally, Taylor Morrison updated its fiscal year 2025 outlook, now expecting home closings to be between 12,800 to 13,000, providing a positive forward-looking statement that likely contributed to the stock's pre-market rally.