Meritage Homes Q2 2023 Earnings Report
Key Takeaways
Meritage Homes Corporation reported strong second quarter 2023 results, with home closings up 8% year-over-year, leading to a 10% increase in home closing revenue. The company's diluted EPS was $5.02, driven by a solid home closing gross margin of 24.4% and SG&A leverage of 9.6%.
Home closings increased by 8% year-over-year, reaching 3,490 units.
Home closing revenue rose by 10% year-over-year to $1.5 billion.
Diluted EPS for the quarter was $5.02.
The company invested $409 million in land acquisition and development, securing approximately 2,800 net new lots.
Meritage Homes
Meritage Homes
Forward Guidance
Meritage Homes projects 13,300-13,800 home closings for full year 2023, which is anticipated to generate home closing revenue of $5.85-6.07 billion. Home closing gross margin is projected to be in the low 24% range. With an estimated effective tax rate of 22.5%, diluted EPS is expected to be in the range of $19.12-19.80 for full year 2023.
Positive Outlook
- Projected home closings of 13,300-13,800 for full year 2023.
- Anticipated home closing revenue of $5.85-6.07 billion for full year 2023.
- Home closing gross margin projected in the low 24% range.
- Estimated effective tax rate of 22.5%.
- Diluted EPS expected to be in the range of $19.12-19.80 for full year 2023.