- Meritage Homes‘ first-quarter earnings per share (EPS) were $1.69, matching the expected estimate, but showed a significant decrease from the previous year’s $5.06.
- Total closing revenue was $1.36 billion, slightly above the estimate of $1.34 billion, but represented a 7.6% decline year-over-year (y/y).
- Home closing revenue stood at $1.34 billion, down 8.5% y/y, but slightly above the estimate of $1.33 billion.
- The company closed 3,416 homes this quarter, a 2.6% decline y/y, but exceeded the estimate of 3,334 homes.
- Orders amounted to $1.56 billion, a decline of 4.5% y/y and below the estimate of $1.69 billion.
- Total orders were 3,876, a 2.9% decrease y/y, failing to meet the estimated 4,213 orders.
- The average number of active communities increased by 6.8% y/y to 291, although slightly below the estimated 296.89.
- The backlog was valued at $812.4 million, significantly down 35% y/y, missing the $1 billion estimate.
- The backlog average sales price was $0.41 million, a minor decrease of 1.2% y/y, aligning with estimates.
- The average sales price for orders was $0.4 million, a reduction of 1.7% y/y, meeting expectations.
- The average sales price for closings was $0.39 million, down 6% y/y, falling short of the $0.4 million estimate.
- The ending backlog for the quarter was 2,004, a significant decline of 34% y/y, not reaching the estimated 2,423.
- Meritage Homes closed nearly 3,900 homes in the first quarter, showing strong activity despite a slower industry start to the year.
- Favorable demographics and limited home supply have sustained homebuying demand in the market.
- Over 60% of the quarter’s closings also sold within the same quarter, reaching a backlog conversion rate of 221%, marking an all-time high for Meritage Homes.
- Deliveries of 3,416 homes contributed to $1.3 billion in home closing revenue and a gross margin of 22%, influencing a diluted EPS of $1.69.
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Meritage Homes on Smartkarma
Analyst coverage of Meritage Homes on Smartkarma reveals bullish sentiments from Baptista Research. In a report titled “Meritage Homes: Recent Market Expansion & Demand Dynamics Driving Our Optimism! – Major Drivers,” the analyst highlights the company’s strong performance in the challenging housing market environment. Meritage Homes closed the fourth quarter of 2024 with 4,044 units and a home closing gross margin of 23.2%, leading to a diluted earnings per share (EPS) of $4.72. This performance showcases the company’s resilience and adaptability in the face of industry volatility.
Furthermore, Baptista Research‘s report “Meritage Homes Corporation: Will The Acquisition Of Acquisition of Elliott Homes Be A Game Changer? – Major Drivers” underscores the company’s solid results in the third quarter of 2024. Meritage Homes‘ focus on constructing affordable, move-in ready homes has resonated positively with homebuyers, resulting in home closing revenue of $1.6 billion and a diluted EPS of $5.34. These reports on Meritage Homes shed light on the company’s strategic moves and financial performance, indicating optimistic outlooks from independent analysts.
A look at Meritage Homes Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Meritage Homes Corporation, a company focused on designing, building, and selling single-family homes in the Southern and Western regions of the United States, displays a promising long-term outlook according to Smartkarma Smart Scores. With a strong Value score of 4, Meritage Homes is seen as offering good value relative to its price. Although not the highest, the company’s scores of 3 in Dividend, Growth, Resilience, and Momentum indicate a well-rounded performance across these key factors. This suggests that while Meritage Homes may not be the top performer in every category, it maintains a solid overall outlook for the future.
The Smartkarma Smart Scores for Meritage Homes point towards a company that is positioned well for the long term. Despite not leading in every individual factor, the company’s consistent scores across Value, Dividend, Growth, Resilience, and Momentum indicate a balanced and stable outlook. Investors looking for a company in the homebuilding sector with a solid foundation and potential for growth may find Meritage Homes to be a compelling prospect based on these scores and the company’s focus on single-family homes in the lucrative Southern and Western regions of the United States.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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