The 10-second takeaway
For the quarter ended March 31 (Q1), Meritage Homes beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew. GAAP earnings per share increased.
Margins increased across the board.
Meritage Homes tallied revenue of $336.4 million. The 12 analysts polled by S&P Capital IQ expected revenue of $325.3 million on the same basis. GAAP reported sales were 65% higher than the prior-year quarter's $204.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.25 per share. Non-GAAP EPS were $0.33 for Q1 versus -$0.14 per share for the prior-year quarter. GAAP EPS were $0.32 for Q1 versus -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.2%, 180 basis points better than the prior-year quarter. Operating margin was 5.7%, 480 basis points better than the prior-year quarter. Net margin was 3.6%, 590 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $402.7 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $1.73 billion. The average EPS estimate is $1.99.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Meritage Homes is hold, with an average price target of $44.00.
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