Meritage Homes Q1 2024 Earnings Report
Key Takeaways
Meritage Homes reported a strong start to the year with record-high quarterly sales orders and a significant increase in diluted EPS. The company's performance was driven by a healthy supply of available inventory and strong market conditions.
Achieved highest quarterly sales orders due to an average absorption pace of 4.9 per month.
Delivered 3,507 homes, with nearly 50% coming from intra-quarter sales orders, resulting in a record backlog conversion rate of 138%.
Increased book value per share by 17% year-over-year to $129.98 and generated a return on equity of 18.0%.
Put nearly 6,300 net new lots under control, representing an estimated 43 future communities, and spent $430 million on land acquisition and development.
Meritage Homes
Meritage Homes
Meritage Homes Revenue by Segment
Meritage Homes Revenue by Geographic Location
Forward Guidance
The Company is providing the following updated guidance for full year 2024, based on first quarter 2024 results and current market conditions:
Positive Outlook
- Home closing volume: 14,500-15,000 units
- Home closing revenue: $6.0-6.2 billion
- Home closing gross margin: 24.5-25.0%
- Effective tax rate: Approximately 22.5%
- Diluted EPS: $19.20-20.70
Revenue & Expenses
Visualization of income flow from segment revenue to net income