Meritage Homes Earnings: Here’s Why the Stock is Falling Now

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 down 2.56%.

Meritage Homes Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 208.33% to $0.74 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Rose 54.57% to $436.04 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Meritage Homes Corporation reported adjusted EPS income of $0.74 per share. By that measure, the company beat the mean analyst estimate of $0.46. It beat the average revenue estimate of $414.34 million.

Quoting Management: “The second quarter of 2013 was another quarter of strong growth, with continued significant improvements across our operating metrics,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “This was our ninth consecutive quarter of positive year-over-year growth in orders and our seventh consecutive quarter of growth in closing revenue year over year.

Key Stats (on next page)…

Revenue increased 28.22% from $340.06 million in the previous quarter. EPS increased 131.25% from $0.32 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.62 to a profit $0.68. For the current year, the average estimate has moved up from a profit of $2.14 to a profit of $2.35 over the last ninety days.

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