The homebuilder's shift to entry-level homes played a role in its earnings decline, but management remains steadfast that the shift will pay off in the long term.
News & Analysis: Meritage Homes
MTH earnings call for the period ending March 31, 2019.
The homebuilder's shift to entry-level housing appears to be paying off in a sizable way.
MTH earnings call for the period ending December 31, 2018.
With earnings more than doubling in Q4, maybe we should have expected that.
MTH earnings call for the period ending September 30, 2018.
Hint: It's not because the company "beat earnings."
The homebuilder's focus on growing demand for entry-level properties continues to pay off, but a shrinking order backlog and growing inventory of unsold homes could spell trouble ahead.
The top-10 homebuilder is getting more bang for its buck by helping homebuyers do the same.
Management's prediction that sales and earnings would grow by focusing downmarket is proving right.