Homebuilder Meritage Homes (NYSE:MTH) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Meritage Homes beat analysts’ revenue expectations by 9.1% last quarter, reporting revenues of $1.70 billion, up 8.2% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA estimates.
Is Meritage Homes a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Meritage Homes’s revenue to decline 1.5% year on year to $1.59 billion, a reversal from the 2.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.98 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Meritage Homes has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 9.9% on average.
Looking at Meritage Homes’s peers in the home builders segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Taylor Morrison Home delivered year-on-year revenue growth of 26.6%, beating analysts’ expectations by 7.8%, and Tri Pointe Homes reported revenues up 36.5%, topping estimates by 8.7%. Taylor Morrison Home traded up 5.4% following the results while Tri Pointe Homes was down 5.2%.
Read our full analysis of Taylor Morrison Home’s results here and Tri Pointe Homes’s results here.
Investors in the home builders segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Meritage Homes is down 10.8% during the same time and is heading into earnings with an average analyst price target of $210.62 (compared to the current share price of $182.84).
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