Why Is Meritage (MTH) Down 0.2% Since Last Earnings Report?

Core Viewpoint - Meritage Homes reported strong second-quarter 2024 results, with earnings and revenues exceeding expectations and showing year-over-year growth [2][4]. Financial Performance - Earnings per share (EPS) reached $6.31, surpassing the Zacks Consensus Estimate by 22.1% and increasing 26% from $5.02 in the previous year [5]. - Total revenues amounted to $1.7 billion, reflecting an 8.3% increase from $1.57 billion in the same quarter last year [5]. - Homebuilding revenues were $1.69 billion, up 7.6% year-over-year, exceeding the consensus estimate by 7.5% [6]. Operational Highlights - The company closed 4,118 homes, an 18% increase from 3,490 units in the prior year [7]. - Total home orders rose 14% year-over-year to 3,799 homes, with a dollar value increase of 7% to $1.57 billion [8]. - The backlog at quarter-end totaled 2,714 units, down 28% year-over-year, with a backlog value decrease of 34% to $1.11 billion [9]. Strategic Initiatives - Meritage invested $631 million in land acquisition and development, controlling over 71,000 lots compared to about 60,000 a year ago [3][11]. - The company achieved a backlog conversion rate of 136% and a return on equity of 18.3% during the quarter [4]. Outlook and Guidance - The company raised its 2024 outlook, now expecting 14,750-15,500 home closings and revenues between $6.1 billion and $6.3 billion [14]. - For Q3, Meritage anticipates 3,650-3,850 home closings, generating revenues of $1.5 billion to $1.6 billion, with EPS expected between $4.60 and $5.05 [16]. Industry Context - Meritage Homes is part of the Zacks Building Products - Home Builders industry, which has seen competitors like D.R. Horton report a revenue increase of 2.5% year-over-year [21].