Meritage Homes (MTH) Misses Q3 Earnings and Revenue Estimates

Core Viewpoint - Meritage Homes reported quarterly earnings of $1.39 per share, missing the Zacks Consensus Estimate of $1.71 per share, and showing a significant decline from $2.67 per share a year ago, indicating an earnings surprise of -18.71% [1][2] Financial Performance - The company posted revenues of $1.42 billion for the quarter ended September 2025, which was 6.85% below the Zacks Consensus Estimate and down from $1.59 billion in the same quarter last year [2] - Over the last four quarters, Meritage has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Meritage shares have declined approximately 7.2% since the beginning of the year, contrasting with the S&P 500's gain of 16.9% [3] - The current Zacks Rank for Meritage is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $1.6 billion, and for the current fiscal year, it is $7.26 on revenues of $6.1 billion [7] - The trend of earnings estimate revisions for Meritage was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Building Products - Home Builders industry, to which Meritage belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges ahead [8] - Beazer Homes, another company in the same industry, is expected to report a significant decline in earnings, with a projected EPS of $0.80, reflecting a year-over-year change of -52.7% [9]