Compared to Estimates, Meritage (MTH) Q4 Earnings: A Look at Key Metrics

Core Insights - Meritage Homes reported a revenue of $1.43 billion for the quarter ended December 2025, reflecting an 11.5% decrease year-over-year and falling short of the Zacks Consensus Estimate of $1.51 billion, resulting in a surprise of -5.16% [1] - The company's earnings per share (EPS) was $1.67, significantly lower than the $4.72 reported in the same quarter last year, but exceeded the consensus EPS estimate of $1.55, yielding a surprise of +8.06% [1] Financial Performance Metrics - Homes ordered totaled 3,224, which was below the average estimate of 3,521 by eight analysts [4] - Home closing revenue's average sales price was $375.00, compared to the estimated $385.51, indicating a shortfall [4] - The order backlog stood at 1,168 homes, lower than the average estimate of 1,333 [4] - Homes closed totaled 3,755, again below the average estimate of 3,887 [4] - The order backlog's average sales price was $377.00, compared to the estimated $407.72 [4] - Active communities at the end of the period totaled 336, slightly above the estimate of 332 [4] - The order backlog value was $440.56 million, significantly lower than the average estimate of $547.9 million [4] - Home orders' average sales price was $374.00, compared to the estimated $388.63 [4] - Total closing revenue from homebuilding was $1.43 billion, below the average estimate of $1.51 billion, marking an 11.5% year-over-year decline [4] - Home closing revenue was $1.41 billion, compared to the estimated $1.5 billion, reflecting an 11.9% decrease year-over-year [4] - Financial services revenue was $8.24 million, slightly below the estimated $8.65 million, representing a 2.3% decline year-over-year [4] - Land closing revenue was $21.07 million, exceeding the average estimate of $10.73 million, with a year-over-year increase of 21.4% [4] Stock Performance - Meritage shares have returned +4.8% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.8% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]