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Mar 31, 2022
Meritage Homes Q1 2022 Earnings Report
Meritage Homes reported a robust start to the 2022 spring selling season, achieving record financial results and a 12% increase in orders over the prior year.
Key Takeaways
Meritage Homes reported strong first-quarter results for 2022, including a 68% increase in diluted EPS, a 560 bps increase in home closing gross margin, and a 12% increase in orders over the prior year. The company's performance was driven by sustained demand, favorable pricing power, and strategic focus on entry-level and first move-up homes.
Highest quarterly sales order volume achieved in Q1 2022.
Home closing revenue increased by 15% year-over-year to $1.2 billion.
Home closing gross margin improved by 560 bps to 30.3%.
Diluted EPS increased by 68% year-over-year to $5.79.
Forward Guidance
Meritage Homes projects 14,500-15,500 home closings for the full year 2022, generating $6.5-6.9 billion in home closing revenue. Home closing gross margin is projected to be in the low 28% range, and diluted EPS is expected to be in the range of $26.30-27.90 for 2022.
Positive Outlook
- Projecting 14,500-15,500 home closings for the full year 2022.
- Anticipating $6.5-6.9 billion in home closing revenue.
- Home closing gross margin is projected to be in the low 28% range.
- Expecting diluted EPS to be in the range of $26.30-27.90 for 2022.
- Mid-year goal of a 300 community count is within reach.
Challenges Ahead
- Interest rates are increasing.
- Operating environment remains constrained.
- Still carefully navigating the constrained operating environment.
- Commodity costs are high.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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