Taylor Morrison Home Corporation (NYSE:TMHC) just released its quarterly report and things are looking bullish. Taylor Morrison Home beat earnings, with revenues hitting US$2.1b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Taylor Morrison Home

Taking into account the latest results, the most recent consensus for Taylor Morrison Home from six analysts is for revenues of US$8.44b in 2025. If met, it would imply an okay 7.8% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 18% to US$9.26. Before this earnings report, the analysts had been forecasting revenues of US$8.41b and earnings per share (EPS) of US$8.92 in 2025. So the consensus seems to have become somewhat more optimistic on Taylor Morrison Home's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.4% to US$80.86. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Taylor Morrison Home analyst has a price target of US$88.00 per share, while the most pessimistic values it at US$74.04. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Taylor Morrison Home's revenue growth is expected to slow, with the forecast 6.2% annualised growth rate until the end of 2025 being well below the historical 9.4% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.0% annually. Factoring in the forecast slowdown in growth, it looks like Taylor Morrison Home is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Taylor Morrison Home's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Taylor Morrison Home. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Taylor Morrison Home analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether Taylor Morrison Home is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.