Meritage Homes
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Meritage Homes missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Margins contracted across the board.
Revenue details
Meritage Homes logged revenue of $246.0 million. The 11 analysts polled by S&P Capital IQ looked for net sales of $250.0 million. Sales were 15% higher than the prior-year quarter's $214.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS details
Non-GAAP EPS came in at $0.06. The eight earnings estimates compiled by S&P Capital IQ predicted $0.09 per share on the same basis. GAAP EPS were -$0.36 for Q4 against -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 13.5%, 460 basis points worse than the prior-year quarter. Operating margin was -2.2%, 590 basis points worse than the prior-year quarter. Net margin was -4.8%, 440 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $204.3 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $986.2 million. The average EPS estimate is $0.72.
Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Meritage Homes is hold, with an average price target of $22.17.
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