Meritage Homes(MTH)

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Meritage Homes: Strong Execution And Resilient Demand Fuel Growth
Seeking Alpha· 2025-02-05 10:51
I am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend momentum investing [share price reaction post earnings etc.]. Over the years, I have used the positive aspects of each approach to hone my investing process. The reason ...
Meritage Homes(MTH) - 2024 Q4 - Earnings Call Transcript
2025-01-31 04:53
Meritage Homes Corporation (NYSE:MTH) Q4 2024 Earnings Conference Call January 30, 2025 10:00 AM ET Company Participants Emily Tadano - Vice President, Investor Relations and ESG Steve Hilton - Executive Chairman Phillippe Lord - Chief Executive Officer Hilla Sferruzza - Executive Vice President and Chief Financial Officer Conference Call Participants Michael Rehaut - JPMorgan Alan Ratner - Zelman & Associates John Lovallo - UBS Trevor Allinson - Wolfe Research Stephen Kim - Evercore Carl Reichardt - BTIG S ...
Meritage Homes(MTH) - 2024 Q4 - Earnings Call Presentation
2025-01-30 17:24
FOURTH QUARTER 2024 ANALYST CONFERENCE CALL JANUARY 30, 2025 Safe Harbor The information included in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general and our future results including our ability to increase our market share, full year 2025 projected home closing volume and home closing revenue, as well as first quarter 2025 projected home closing volume, h ...
Meritage Homes' Q4 Earnings & Revenues Surpass Estimates
ZACKS· 2025-01-30 16:10
Earnings and Revenue Performance - Earnings per share (EPS) of $4.72 beat the Zacks Consensus Estimate by 113.6% but declined 12% year over year from $5.38 [4] - Total revenues of $1.62 billion decreased 2.3% year over year from $1.66 billion [4] - Total closing revenues of $1.61 billion declined 2% year over year but exceeded the consensus estimate of $1.57 billion by 2.8% [5] - Home closing revenues under the Homebuilding segment fell 3% year over year to $1.595 billion due to lower average sales prices (ASPs) [5] - Land closing revenues increased 49% year over year to $17.4 million [5] Operational Metrics - Homes closed increased 2% year over year to 4,044 units, with ASPs declining 5% to $395,000 [6] - Total home orders rose 14% year over year to 3,304 homes, with dollar value increasing 10% to $1.32 billion [7] - Entry-level buyers accounted for 91% of sales orders, up from 88% in the prior-year period [8] - Backlog units decreased 39% year over year to 1,544, with backlog value down 42% to $629.5 million [8] - Average absorption pace improved 8% year over year to 3.9 homes per month [7] Margins and Expenses - Home closing gross margin contracted 200 basis points (bps) to 23.2%, driven by higher lot costs and financing incentives [9] - Selling, general, and administrative expenses as a percentage of home closing revenues increased 10 bps to 10.8% [10] - Financial Services segment revenues grew 17% year over year to $8.4 million [10] Full-Year 2024 Highlights - Total revenues for 2024 increased 4.2% year over year to $6.4 billion [12] - EPS rose 8% year over year to $21.44 [12] - Homes delivered increased 12% to 15,611, with ASPs declining 6% to $406,000 [12] - Gross margins improved 10 bps to 24.9% [12] Financial Position - Cash and cash equivalents decreased to $651.6 million from $921.2 million at the end of 2023 [13] - Total lots owned or controlled increased to 65,600, including 5,500 from the Elliott Homes acquisition [13] - Total debt to capital rose to 20.6% from 17.9% at the end of 2023, while net debt to capital increased to 11.7% from 1.9% [13] - Net cash used by operating activities was $227.6 million, compared to $355.6 million provided in 2023 [14] - The company paid $108.6 million in dividends and repurchased 732,255 shares for $125.9 million [14] 2025 Guidance - The company expects to close between 16,250 and 16,750 homes, up from 15,611 in 2024 [15] - Revenue is projected to be between $6.6 billion and $6.9 billion, reflecting continued demand for affordable housing [15] Peer Performance - D R Horton reported Q1 fiscal 2025 earnings and revenues beating estimates but declining year over year [16] - D R Horton leveraged mortgage rate buydowns and smaller floor plans to address affordability challenges [17] - KB Home posted strong Q4 2024 results, with revenues and earnings surpassing expectations and increasing year over year [18] - KB Home's strategy focused on faster build times and strong homeownership demand despite mortgage rate pressures [19] - NVR reported Q4 2024 earnings and Homebuilding revenues exceeding estimates, with both metrics increasing year over year [20] - NVR saw strong growth in settlements despite a decline in new orders [21]
Meritage (MTH) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2025-01-30 02:01
Financial Performance - Revenue for Q4 2024 was $1.61 billion, a 2.4% decrease year-over-year [1] - EPS for Q4 2024 was $4.72, a significant increase from $2.69 in the year-ago quarter [1] - Revenue exceeded the Zacks Consensus Estimate by 2.80%, with EPS surpassing estimates by 113.57% [1] Key Metrics Analysis - Home Closing Revenue - Average sales price was $395, slightly below the 10-analyst average estimate of $402.77 [4] - Homes closed totaled 4,044, exceeding the 10-analyst average estimate of 3,885 [4] - Homes ordered were 3,304, slightly below the 10-analyst average estimate of 3,352 [4] - Order Backlog was 1,544, below the nine-analyst average estimate of 1,759 [4] - Active Communities - Ending - Total was 292, below the eight-analyst average estimate of 303 [4] - Order Backlog - Average sales price was $408, slightly above the eight-analyst average estimate of $406 [4] - Order Backlog Value was $629.55 million, below the seven-analyst average estimate of $708.57 million [4] - Homes Ordered Value was $1.32 billion, slightly below the six-analyst average estimate of $1.35 billion [4] Revenue Breakdown - Total closing revenue (Homebuilding) was $1.61 billion, exceeding the 11-analyst average estimate of $1.57 billion, with a year-over-year change of -2.4% [4] - Home closing revenue was $1.60 billion, exceeding the 11-analyst average estimate of $1.56 billion, with a year-over-year change of -2.8% [4] - Land closing revenue was $17.36 million, significantly above the 10-analyst average estimate of $6.15 million, with a year-over-year change of +48.6% [4] - Financial Services revenue was $8.43 million, above the 10-analyst average estimate of $7.43 million, with a year-over-year change of +17.1% [4] Stock Performance - Shares of Meritage returned +5.2% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently has a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]
Meritage Homes (MTH) Q4 Earnings and Revenues Top Estimates
ZACKS· 2025-01-29 23:57
Meritage Homes (MTH) came out with quarterly earnings of $4.72 per share, beating the Zacks Consensus Estimate of $2.21 per share. This compares to earnings of $2.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 113.57%. A quarter ago, it was expected that this homebuilder would post earnings of $2.53 per share when it actually produced earnings of $2.67, delivering a surprise of 5.53%.Over the last four quarters, the compan ...
Meritage Homes(MTH) - 2024 Q4 - Annual Results
2025-01-29 21:31
Exhibit 99.1 Contacts: Emily Tadano, VP Investor Relations and ESG (480) 515-8979 (office) investors@meritagehomes.com Meritage Homes reports fourth quarter 2024 results SCOTTSDALE, Ariz., January 29, 2025 - Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2024. Summary Operating Results (unaudited) (Dollars in thousands, except per share amounts) | | | | Three Months Ended December 31, | | | | | Twelv ...
Meritage Homes reports fourth quarter 2024 results
GlobeNewswire· 2025-01-29 21:30
SCOTTSDALE, Ariz., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2024. Summary Operating Results (unaudited)(Dollars in thousands, except per share amounts) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 % Chg 2024 2023<td style="text-align: cente ...
Meritage Homes to Report Q4 Earnings: What's in Store for the Stock?
ZACKS· 2025-01-27 17:41
Earnings Report and Estimates - Meritage Homes Corporation (MTH) is scheduled to report Q4 2024 results on Jan 29, after market close [1] - The Zacks Consensus Estimate for Q4 2024 EPS decreased to $2.25 from $2.27 in the past 30 days, indicating a 16.4% YoY decrease from $2.69 [3] - The consensus mark for revenues is pegged at $1.57 billion, indicating a 5.1% YoY decrease [3] Quarterly Performance and Factors - Total closing revenues decreased 2% YoY in the last reported quarter [2] - Q4 earnings and revenues are expected to decrease YoY due to affordability pressures and increased use of incentives [4] - The company expects home closings to be in the range of 3,750-3,950 units, down from 3,951 units a year ago [5] - Home closing revenues are anticipated to be in the $1.5-$1.59 billion range, down from $1.64 billion YoY [5] Segment-wise Performance - Homebuilding segment, which contributed 99.6% to total revenues in 2023, is predicted to drop 5.3% YoY to $1.57 billion [7] - Financial services revenues, which contributed 0.4% to total revenues in 2023, are expected to increase 8.8% YoY to $7.8 million [7] Margins and Incentives - Gross margins are forecasted to be in the range of 22.5% to 23.5%, down from Q3's 24.8% and the prior year's 25.2% [8] - Increased use of financing incentives, including rate buydowns, has weighed on the company's ASP [8] Backlogs and Home Orders - Home orders are expected to grow 24% to 3,587 units in Q4 2024 [9] - Total backlog is expected to decline 22% to 1,988 units, with the total backlog value decreasing 25% YoY to $816.2 million [9] Integration and Market Focus - Meritage Homes is integrating Elliott Homes, a private builder with a strong presence in the Gulf Coast markets [5] - The company's focus on the entry-level market, which remains structurally undersupplied, should continue to provide a steady stream of buyers [4] Earnings ESP and Zacks Rank - MTH has an Earnings ESP of -1.27% and a Zacks Rank 3, indicating no predicted earnings beat for the quarter [10] Other Companies in the Sector - Weyerhaeuser (WY) has an Earnings ESP of +1.01% and a Zacks Rank of 1, with expected Q4 2024 earnings to decrease 56.3% [11] - Sterling Infrastructure, Inc. (STRL) has an Earnings ESP of +2.99% and a Zacks Rank of 3, with expected Q4 2024 earnings to increase 3.1% [12] - PulteGroup, Inc. (PHM) has an Earnings ESP of +2.36% and a Zacks Rank of 3, with expected Q4 2024 earnings to decrease 2.1% [13]
Meritage Homes (MTH) Expected to Beat Earnings Estimates: Should You Buy?
ZACKS· 2025-01-22 16:06
The market expects Meritage Homes (MTH) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be releas ...