Meritage Homes Q3 2023 Earnings Report
Key Takeaways
Meritage Homes reported a 50% year-over-year increase in sales orders driven by accelerated cycle times and move-in ready inventory. Home closing revenue increased by 3% to $1.6 billion. Diluted EPS decreased by 16% to $5.98.
Sales orders increased by 50% year-over-year, driven by a 52% increase in average absorption pace.
Home closing revenue increased by 3% year-over-year to $1.6 billion.
Diluted EPS decreased by 16% year-over-year to $5.98.
The company repurchased $45.0 million of common stock and redeemed $150.0 million of senior notes.
Meritage Homes
Meritage Homes
Forward Guidance
Meritage Homes projects 3,500-3,700 home closings for the fourth quarter of 2023, which they anticipate will generate quarterly home closing revenue of $1.45-1.53 billion. Home closing gross margin is projected to be 25-26%. With an estimated effective tax rate of about 23%, they expect diluted EPS to be in the range of $4.84-5.43 for the fourth quarter of 2023.
Positive Outlook
- Projecting 3,500-3,700 home closings
- Expecting quarterly home closing revenue of $1.45-1.53 billion
- Home closing gross margin projected to be 25-26%
- Estimated effective tax rate of about 23%
- Diluted EPS expected to be in the range of $4.84-5.43