Taylor Morrison Home Corp. recorded earnings that outpaced analysts' estimates and announced a partnership in the growing rental market on Wednesday.
The builder and mortgage lender, which is now partnering with Christopher Todd Communities in the single-family rental market, generated $82 million in net income during the second quarter, up 38% from a year ago.
Taylor Morrison's net sales orders were up 20% year-over-year at 2,810, and its average sales price dropped 6% to $484,000.
The company was able to maintain "flat" margins during the quarter despite having to absorb $4 million in expenses related to its integration of AV Homes and debt extinguishment charges, according to its earnings release.
Taylor Morrison's earnings per share of $0.76 beat Seeking Alpha's consensus estimates by $0.10. Its $1.27 billion in revenue, which was up almost 30% year-over-year, beat Seeking Alpha's estimates by $70 million.
"We continued the momentum experienced at the end of the first quarter, which led us to exceeding expectations in our key operating metrics for the second quarter," said Sheryl Palmer, chairman and CEO.
The company's stock price trended higher than the previous day on Wednesday morning, when it traded between $22 and $23 per share.
Second-quarter earnings at MDC Holdings, another builder and lender, also outpaced Seeking Alpha's estimates on Wednesday.
MDC earned $54.6 million in net income during the quarter, down from $69.3 million a year ago. Its $0.86 in earnings per share beat estimates by $0.08 and its $732.8 million in revenue beat estimates by $5.6 million.
The company confirmed
MDC's stock price was generally lower than it had been the previous day on Wednesday morning, when it traded in a range between $35 and $37 per share.
