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Sep 30, 2021
Meritage Homes Q3 2021 Earnings Report
Meritage Homes reported record gross margin and diluted EPS for Q3 2021.
Key Takeaways
Meritage Homes reported a strong third quarter in 2021, with a record gross margin of 29.7% and diluted EPS of $5.25. The company delivered 3,112 homes, resulting in a 10% year-over-year increase in home closing revenue to $1.3 billion.
Achieved record third quarter home closings in company history.
Generated a 10% year-over-year increase in home closing revenue, reaching $1.3 billion.
Attained a record gross margin of 29.7%.
Reported a record diluted EPS of $5.25.
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 12,600-12,900 home closings for the full year 2021, which are anticipated to generate $5.05-5.15 billion in home closing revenue. Home closing gross margin is projected to be 27.50-27.75%. With an increase to the projected effective tax rate of 23.0%, diluted EPS is expected to be in the range of $18.75-19.40 for 2021.
Positive Outlook
- Projecting 12,600-12,900 home closings for full year 2021.
- Anticipating $5.05-5.15 billion in home closing revenue.
- Projecting home closing gross margin to be 27.50-27.75%.
- Expecting diluted EPS to be in the range of $18.75-19.40 for 2021.
- Anticipating a year-over-year increase of over 70% in diluted EPS.
Challenges Ahead
- Managing through current supply issues.
- Projected effective tax rate increased to 23.0%.
- Ongoing industry-wide supply chain disruptions.
- Delays in permitting, zoning and entitlement.
- Land supply chain constraints.
Revenue & Expenses
Visualization of income flow from segment revenue to net income