Meritage Homes (NYSE: MTH) reported earnings on Oct. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Meritage Homes met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins grew across the board.
Revenue details
Meritage Homes notched revenue of $342.6 million. The 12 analysts polled by S&P Capital IQ expected revenue of $344.0 million on the same basis. GAAP reported sales were 58% higher than the prior-year quarter's $217.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.45. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS were $0.19 for Q3 against -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 18.2%, 70 basis points better than the prior-year quarter. Operating margin was 5.1%, 420 basis points better than the prior-year quarter. Net margin was 2.0%, 350 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $350.7 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is $0.79.
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 $35.70.
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