Homebuilder Meritage Homes (NYSE: MTH) will be reporting results this Tuesday afternoon. Here’s what to look for.
Meritage Homes beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $1.63 billion, down 4% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ backlog estimates.
Is Meritage Homes a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Meritage Homes’s revenue to decline 7.6% year on year to $1.47 billion, a further deceleration from the 1.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Meritage Homes has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.4% 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’s revenues decreased 1.2% year on year, beating analysts’ expectations by 3.4%, and Tri Pointe Homes reported a revenue decline of 25.3%, topping estimates by 15%. Taylor Morrison Home traded down 2.4% following the results while Tri Pointe Homes’s stock price was unchanged.
Read our full analysis of Taylor Morrison Home’s results here and Tri Pointe Homes’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 3.7% on average over the last month. Meritage Homes is down 1.8% during the same time and is heading into earnings with an average analyst price target of $83.88 (compared to the current share price of $71.41).
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