Taylor Morrison Home (NYSE: TMHC) reported Q1 EPS of $0.46, $0.12 better than the analyst estimate of $0.34. Revenue for the quarter came in at $925 million versus the consensus estimate of $851.25 million.

• Net sales orders were 2,615, a 7% increase over the prior year quarter
• Home closings were 1,938, a 25% increase over the prior year quarter
• Total revenue was $925 million, a 23% increase over the prior year quarter
• GAAP home closings gross margin was 18.2%
• SG&A as a percent of home closings revenue was 11.5%, compared to 11.9% during Q1 2018
• Net income was $51 million with diluted earnings per share of $0.46

"I'm proud of our strong first quarter performance and delighted that we exceeded our expectations in our operating metrics for the quarter including: orders, closings, home closings gross margin, SG&A and earnings per share," said Sheryl Palmer, Chairman and CEO of Taylor Morrison.

For the first quarter, net sales orders were 2,615, with an average community count of 372. The Company ended the quarter with 4,835 units in backlog, a year-over-year increase of 10 percent, with a sales value of almost $2.4 billion.

"For the quarter, closings totaled 1,938, representing a 25% increase over the same period last year," added Palmer. "We have been focused on smart growth for some time now as shown by our four acquisitions in the past four years, allowing us to gain scale in a meaningful way. As a result of the teams' hard work, we set all-time first quarter highs for the company in both sales and closings."

"We believe the homebuilding market remains strong given a solid, growing economy, 30-year mortgage rates near four percent, stock market indexes near all-time highs and underbuilt markets with historically low inventory levels," said Palmer. "We continue to see strength in many segments of our markets including our 55-plus communities, which saw nice sales momentum during the quarter."

"On Earth Day, we released our first Corporate Responsibility Report, addressing our approach to environmental, social and governance issues," said Palmer. "We are committed to incorporating sustainable values into how we operate our business and continue to grow and refine our environmental, social and governance reporting. As part of these efforts, we are proud to partner with the National Wildlife Foundation to help us with habitat conservation best practices and other engagement opportunities for our customers and team members."

"SG&A as a percentage of homebuilding revenue came in at 11.5%, which represented 40 basis points of leverage when compared to first quarter 2018. The addition of AV Homes is allowing us to drive top-line leverage," said Dave Cone, Executive Vice President and Chief Financial Officer. "Our earnings before income taxes as a percent of total revenue was 7.4%, or 7.8% when adjusted for AV transaction expenses during the quarter."

Second Quarter and Full Year 2019 Business Outlook

Second Quarter 2019:

• Average active community count is expected to be flat to slightly down sequentially
• Home closings are expected to be between 2,225 and 2,425
• GAAP home closings gross margin, inclusive of capitalized interest and purchase accounting, is expected to be in the mid-to-high 17 percent range
• Effective tax rate is expected to be about 25 percent
• Diluted share count is expected to be about 108 million

Full Year 2019:

• Average active community count is expected to be between 365 and 375
• Monthly absorption pace is expected to be consistent with 2018 performance
• Home closings are expected to be between 9,500 and 10,000
• GAAP home closings gross margin, inclusive of capitalized interest and purchase accounting, is expected to be in the mid-to-high 17 percent range
• SG&A as a percentage of home closings revenue is expected to be in the low-to-mid 10 percent range
• Income from unconsolidated joint ventures is expected to be between $11 million to $13 million
• Land and development spend is expected to be approximately $1.2 billion
• Effective tax rate is expected to be about 25 percent
• Diluted share count is expected to be about 108 million

For earnings history and earnings-related data on Taylor Morrison Home (TMHC) click here.