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Jun 30, 2021
Meritage Homes Q2 2021 Earnings Report
Meritage Homes reported record gross margin and an increase in community count, along with a significant rise in diluted EPS.
Key Takeaways
Meritage Homes reported strong second-quarter results, driven by robust homebuying demand and operational efficiencies. The company achieved a record gross margin of 27.3% and an 83% increase in diluted EPS. Home closing revenue increased by 23% year-over-year, reaching $1.3 billion.
Achieved a record gross margin of 27.3% for the second quarter of 2021.
Increased community count by 11% sequentially to 226 active communities.
Reported home closing revenue of $1.3 billion, a 23% increase year-over-year.
Diluted EPS increased by 83% year-over-year, reaching $4.36.
Revenue by Geographic Location
Forward Guidance
Meritage Homes projects 2021 home closings of approximately 12,500-13,000 and home closing revenue in the range of $5.00-5.25 billion. They also anticipate a full-year home closing gross margin of around 27.5% and diluted EPS of approximately $18.55-19.45.
Positive Outlook
- Strong housing demand and ability to sell homes soon after release.
- Expected net construction costs to stay flat or decline over the next couple of quarters due to lumber price declines.
- Ongoing community count growth contributing to strong financial results.
- Anticipated home closing gross margin of around 27.5% for the full year.
- Projected diluted EPS of approximately $18.55-19.45 for 2021.
Challenges Ahead
- Adjusting and maximizing prices based on market conditions.
- Orders pace aligned with production schedule due to supply chain constraints.
- Potential impact of supply chain constraints on production.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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