Meritage Homes's Earnings: A Preview
Meritage Homes (NYSE:MTH) will release its quarterly earnings report on Wednesday, 2025-07-23. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Meritage Homes to report an earnings per share (EPS) of $2.01.
Investors in Meritage Homes are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Overview of Past Earnings
During the last quarter, the company reported an EPS beat by $0.01, leading to a 1.04% increase in the share price on the subsequent day.
Here's a look at Meritage Homes's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.68 | 2.20 | 2.48 | 2.59 |
| EPS Actual | 1.69 | 2.36 | 2.67 | 3.16 |
| Price Change % | 1.0% | 3.0% | -2.0% | 1.0% |
Stock Performance
Shares of Meritage Homes were trading at $69.95 as of July 21. Over the last 52-week period, shares are down 21.36%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Insights Shared by Analysts on Meritage Homes
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Meritage Homes.
Analysts have provided Meritage Homes with 3 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $76.33, suggesting a potential 9.12% upside.
Comparing Ratings with Competitors
The analysis below examines the analyst ratings and average 1-year price targets of Installed Building Prods, Taylor Morrison Home and KB Home, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Installed Building Prods, with an average 1-year price target of $192.5, suggesting a potential 175.2% upside.
- Analysts currently favor an Outperform trajectory for Taylor Morrison Home, with an average 1-year price target of $74.67, suggesting a potential 6.75% upside.
- Analysts currently favor an Neutral trajectory for KB Home, with an average 1-year price target of $58.25, suggesting a potential 16.73% downside.
Summary of Peers Analysis
The peer analysis summary provides a snapshot of key metrics for Installed Building Prods, Taylor Morrison Home and KB Home, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Meritage Homes | Neutral | -7.17% | $302.38M | 2.38% |
| Installed Building Prods | Buy | -1.17% | $223.70M | 6.65% |
| Taylor Morrison Home | Outperform | 11.55% | $463.27M | 3.61% |
| KB Home | Neutral | -10.54% | $297.96M | 2.65% |
Key Takeaway:
In terms of consensus rating, Meritage Homes is rated in the middle compared to its peers. It ranks at the bottom for revenue growth among the group. However, it has the highest gross profit. When it comes to return on equity, Meritage Homes is positioned in the middle range.
Delving into Meritage Homes's Background
Meritage Homes Corp is engaged as a designer and builder of single-family attached and detached homes. It has operations in three regions: West, Central, and East, comprising ten states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Utah. The company operates with two principal business segments: homebuilding and financial services. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer services, and the financial services segment offers title and escrow, mortgage, and insurance services. The company generates key revenue from the homebuilding segment.
Key Indicators: Meritage Homes's Financial Health
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Challenges: Meritage Homes's revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -7.17%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Meritage Homes's net margin is impressive, surpassing industry averages. With a net margin of 8.99%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.38%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Meritage Homes's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.65%, the company may face hurdles in achieving optimal financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.36, Meritage Homes adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Meritage Homes visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
