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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.
Meritage Homes
Meritage Homes
Meritage Homes Revenue by Geographic Location
Revenue by Geographic Location
West Region Revenue
CapyFin.comCentral Region Revenue
CapyFin.comEast Region Revenue
CapyFin.com 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.
- Uncertainty in the housing market due to fluctuating macroeconomic conditions.
- Possible changes in interest rates and availability of residential mortgages.
Revenue & Expenses
Visualization of income flow from segment revenue to net income