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Jun 30, 2024
Meritage Homes Q2 2024 Earnings Report
Meritage Homes reported strong second quarter 2024 results, marked by an 18% increase in home closings, a home closing gross margin of 25.9%, and a 26% increase in diluted EPS.
Key Takeaways
Meritage Homes reported a robust second quarter in 2024, with significant growth in home closings, revenue, and earnings per share. The company's focus on quick-turning, move-in ready homes and affordable entry-level products drove strong order volume and backlog conversion.
Home closing revenue reached $1.7 billion due to focus on delivering quick turning move-in ready homes.
Orders increased 14% year-over-year, driven by a 15% increase in average absorption pace.
Home closing gross margin improved to 25.9% due to lower direct costs and greater leverage of fixed costs.
Diluted EPS increased 26% year-over-year to $6.31, supported by higher revenue and gross profit.
Forward Guidance
Meritage Homes provided updated guidance for full year 2024, based on first half 2024 results and current market conditions.
Positive Outlook
- Home closing volume is projected to be between 14,750 and 15,500 units.
- Home closing revenue is expected to be between $6.1 billion and $6.3 billion.
- Home closing gross margin is anticipated to be between 24.5% and 25.0%.
- The effective tax rate is projected to be approximately 22.5%.
- Diluted EPS is expected to be between $19.80 and $21.00.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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