- Meritage Homes‘ fourth-quarter earnings per share (EPS) exceeded estimates, reported at $4.72 compared to an estimate of $2.24.
- Fourth-quarter EPS decreased from the previous year’s $5.38.
- Total closing revenue was $1.61 billion, a slight decrease of 2.4% year-over-year, but exceeded the estimate of $1.57 billion.
- Home closing revenue also experienced a decrease of 2.8% year-over-year, reported at $1.60 billion, surpassing the estimate of $1.56 billion.
- The gross margin on home sales was 23.2%, down from 25.2% the previous year.
- There were 4,044 homes closed in the quarter, an increase of 2.4% year-over-year, exceeding the estimate of 3,884.
- Orders for the quarter reached $1.32 billion, a 10% increase year-over-year, surpassing the estimated $1.31 billion.
- Order quantities increased to 3,304, marking a 14% year-over-year rise and slightly exceeding the estimate of 3,296.
- The average number of active communities during the quarter was 285.0, a growth of 5.2% year-over-year, but below the estimate of 295.23.
- The average sales price for orders was $0.4 million, a decrease of 3.6% year-over-year, in line with estimates.
- The average sales price for closings was also $0.4 million, down by 4.8% year-over-year, matching expectations.
- For the full year 2024, Meritage Homes reported the highest annual closing volume of 15,611 homes and a record home closing revenue of $6.3 billion despite a decrease in average sales price.
- Meritage Homes completed a two-for-one stock split on January 2, 2025, reflecting confidence in its long-term growth potential.
- The fourth-quarter deliveries and financial performance resulted in a diluted EPS of $4.72.
- Analyst recommendations include 5 buys, 6 holds, and 1 sell.
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Meritage Homes on Smartkarma
Analyst coverage of Meritage Homes on Smartkarma reveals insights from Baptista Research. In their report titled, “Meritage Homes Corporation: Will The Acquisition Of Acquisition of Elliott Homes Be A Game Changer? – Major Drivers,” the analysts note the company’s solid performance in the third quarter of 2024. Meritage Homes‘ focus on constructing affordable, move-in ready homes resonates positively with homebuyers, with key financials including $1.6 billion in home closing revenue and a diluted EPS of $5.34.
Another report by Baptista Research, “Meritage Homes Corporation: Refined Incentive & Pricing Structures in Response to Economic Conditions & Major Drivers,” highlights a mix of operational achievements and challenges in the company’s second quarter of 2024. Meritage Homes demonstrated robust financial results, with increased sales, gross margin expansion, and operational efficiency improvements. The report delves into factors influencing the company’s future stock price and conducts an independent valuation using a Discounted Cash Flow methodology.
A look at Meritage Homes Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Meritage Homes Corporation shows promising long-term potential. With high scores in Value and Growth, the company appears to be positioned well for future success in the homebuilding sector. Meritage Homes‘ focus on providing quality homes at competitive prices aligns with its strong value score, indicating good investment value. Additionally, its growth score suggests the company has the potential for expansion and increasing market presence.
While Meritage Homes scores lower in Dividend, Resilience, and Momentum, the overall positive outlook in key areas like Value and Growth bodes well for its future performance. Known for designing, building, and selling single-family homes across the South and West of the United States, Meritage Homes Corporation’s emphasis on quality and a range of housing options reinforces its standing in the market and sets a foundation for continued growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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