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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.
Meritage Homes
Meritage Homes
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.