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Dec 31, 2021

Meritage Homes Q4 2021 Earnings Report

Meritage Homes reported Q4 2021 results, including an increase in home closing gross margin, community count, and diluted EPS over the prior year.

Key Takeaways

Meritage Homes reported strong Q4 2021 results with record quarterly home closing revenue, home closing gross profit, and diluted EPS. The company's success was attributed to strong demand in the homebuilding market and effective execution by the team.

Achieved highest fourth quarter of sales orders and second highest quarterly home closings.

Broke several financial company records, including highest quarterly home closing revenue, home closing gross profit and diluted EPS.

Ended the quarter with 259 active communities, a 33% year-over-year increase.

Projecting 14,500-15,500 home closings for the full year 2022, generating $6.1-6.5 billion in home closing revenue.

Total Revenue
$1.5B
Previous year: $1.41B
+6.3%
EPS
$3.13
Previous year: $1.99
+57.3%
Total Homes Backlog
5.68K
Previous year: 4.67K
+21.6%
Total Value Backlog
$2.52B
Previous year: $1.81B
+38.8%
Total Avg Sales Price Backlog
$443
Previous year: $388
+14.2%
Gross Profit
$433M
Previous year: $338M
+28.1%
Cash and Equivalents
$618M
Previous year: $746M
-17.1%
Free Cash Flow
$88.9M
Previous year: $152M
-41.6%
Total Assets
$4.81B
Previous year: $3.86B
+24.4%

Meritage Homes

Meritage Homes

Meritage Homes Revenue by Geographic Location

Forward Guidance

Meritage Homes projects 14,500-15,500 home closings for the full year 2022, which they anticipate will generate $6.1-6.5 billion in home closing revenue. Home closing gross margin is projected to be around 27.75%. With a projected effective tax rate of 25%, they expect diluted EPS to be in the range of $23.15-24.65 for 2022.

Positive Outlook

  • Projecting 14,500-15,500 home closings for the full year 2022.
  • Anticipate generating $6.1-6.5 billion in home closing revenue.
  • Home closing gross margin is projected to be around 27.75%.
  • Projected effective tax rate of 25%.
  • Expect diluted EPS to be in the range of $23.15-24.65 for 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income