Shares of Taylor Morrison Home (TMHC) surged 5.41% in pre-market trading on Wednesday, following the homebuilder's impressive fourth-quarter and full-year 2024 results that topped analysts' expectations. The stock rally reflects investor optimism surrounding the company's strong financial performance and positive outlook for 2025.

For the fourth quarter, Taylor Morrison reported adjusted earnings of $2.64 per diluted share, up from $2.05 per share in the year-ago period and exceeding the $2.41 per share estimate from analysts polled by FactSet. Revenue for the quarter soared 16.7% year-over-year to $2.36 billion, beating the consensus estimate of $2.12 billion.

The homebuilder's robust quarterly results were driven by a 12% increase in home closings revenue, coupled with a 70-basis-point expansion in home closings gross margin to 24.8%. Taylor Morrison also reported a 20.5% surge in net sales orders for its Central region, reflecting strong housing demand across its markets.

For the full year 2024, Taylor Morrison delivered adjusted earnings of $8.72 per diluted share, up from $7.54 in 2023. Total revenue grew 10.1% to $8.17 billion, fueled by an 8.3% rise in home closings revenue and a 50-basis-point improvement in home closings gross margin to 24.5%.

Looking ahead, Taylor Morrison expects home closings between 13,500 to 14,000 units in 2025, with an average selling price range of $590,000 to $600,000 and a home closings gross margin of 23% to 24%. The company also plans to repurchase $300 million to $350 million worth of its own shares in 2025, reflecting its commitment to shareholder returns.