Meritage Homes Earnings: Here’s Why Investors Like These Results

Meritage Homes Corporation (NYSE:MTH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.55%.

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Meritage Homes Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.32 in the quarter versus EPS of $-0.15 in the year-earlier quarter.

Revenue: Rose 64.62% to $336.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Meritage Homes Corporation reported adjusted EPS income of $0.32 per share. By that measure, the company beat the mean analyst estimate of $0.23. It beat the average revenue estimate of $324.38 million.

Quoting Management: “We continued to achieve significant gains in virtually every key metric we had targeted and across all of our states during the first quarter of 2013,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “We grew our first quarter orders, closings, backlog, average prices, revenue, gross margin and pretax margin significantly over the prior year, with most of those metrics reaching heights we haven’t seen for many years. I believe our strong performance is due to sound strategies and operational execution, as well as healthier market conditions evident during this spring selling season.”

Key Stats (on next page)…

Revenue decreased 7.73% from $364.59 million in the previous quarter. EPS decreased 49.21% from $0.63 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.41. For the current year, the average estimate has moved down from a profit of $2.1 to a profit of $1.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)