NYSE$MTH

Meritage Homes Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Meritage Homes' Q2 2022 results were reported, highlighting the achievement of its 300 community goal, a 55% increase in diluted EPS, and a 430 bps increase in home closing gross margin over the prior year.

Meritage Homes reported strong second quarter 2022 results, with a 6% increase in sales orders, an 11% increase in home closing revenue to $1.4 billion, and a 430 bps improvement in home closing gross margin to 31.6%. Diluted EPS increased by 55% year-over-year to $6.77.

  • Achieved long-term goal of 300 communities, ending June 2022 with 303 communities.
  • Sales orders increased by 6% year-over-year, driven by a 33% increase in average community count.
  • Home closing revenue increased by 11% year-over-year to $1.4 billion.
  • Home closing gross margin improved by 430 bps year-over-year to 31.6%.

Headline financials

Total Revenue

$1.41B

Previous: $1.28B+10.5%
EPS (adj)

$3.39

Previous: $2.37+43.0%
Average sales price - backlog

$480K

Previous: $421.00+113914.3%
Capital Expenditures

-$12.9M

Previous: $5.98M-315.0%
Free Cash Flow

$237M

Previous: -$136M+275.1%
Net Income

$250M

Previous: $167M+49.4%
Operating Income

$328M

Previous: $216M+52.1%
Gross Profit

$445M

Previous: $345M+29.1%
Cash & Equivalents

$272M

Previous: $684M-60.2%
Total Assets

$5.31B

Previous: $4.32B+22.8%
Stock-Based Comp

$4.07M

Previous: $3.22M+26.3%

Revenue & EPS history

Meritage Homes · Revenue · Quarterly

$1.41B

Q2 2022+10.5%vs Q2 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Meritage Homes · $23.1M total across 2 segments · Q1 2023

  • Land closing revenue
    $17.4M
  • Financial services revenue
    $5.73M

Forward guidance

Due to the lack of visibility into the market at this time, we are not providing full year 2022 guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+4.3%

Avg return

30 days after

50%

33 / 66 earnings

Positive

+20.9%

Q2 2019

Best reaction

-11.8%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+1.0%-6.6%
Q4 2025+1.1%+5.2%+9.0%
Q3 2025-5.9%-7.4%+2.9%
Q2 2025-5.4%-7.1%+7.1%
Q1 2025+1.0%-1.8%-5.8%
Q4 2024+2.8%-1.8%-8.1%
Q3 2024-3.8%-0.6%+2.6%
Q2 2024+1.1%+3.7%+13.9%
Q1 2024+4.3%+7.1%+10.4%
Q4 2023-8.8%-9.9%-5.2%
Q3 2023+9.0%+19.1%+26.2%
Q2 2023+7.0%+6.1%-5.4%
Q1 2023-2.2%+0.7%-6.4%
Q4 2022+8.3%+2.5%+2.1%
Q3 2022+1.6%+4.3%+17.8%
Q2 2022+2.6%+2.4%-6.5%
Q1 2022+4.2%+3.8%+5.9%
Q4 2021-5.6%-2.4%-6.5%
Q3 2021+4.1%+2.2%+9.0%
Q2 2021+10.6%+13.0%+16.1%
Q1 2021+12.6%+13.6%+13.3%
Q4 2020-8.5%-12.0%-10.3%
Q3 2020-11.1%-12.7%-17.1%
Q2 2020+5.3%+15.3%+23.0%
Q1 2020+19.9%+16.3%+59.5%
Q4 2019+3.4%+1.9%-10.5%
Q3 2019-0.6%+0.4%-10.0%
Q2 2019+20.9%+17.8%+20.3%
Q1 2019+5.4%+3.6%+3.9%
Q4 2018+11.5%+10.0%+7.5%
Q3 2018+7.8%+5.4%+15.5%
Q2 2018-0.1%-0.9%+0.8%
Q1 2018+7.0%+4.0%+7.2%
Q4 2017+3.2%-0.3%-8.9%
Q3 2017-0.1%+1.1%+5.9%
Q2 2017+7.9%+7.6%-0.1%
Q1 2017-1.8%-3.8%+1.8%
Q4 2016-6.4%-6.3%-1.2%
Q3 2016-6.9%-8.7%+11.0%
Q2 2016-10.2%-12.9%-12.0%
Q1 2016-11.8%
Q4 2015+17.9%
Q3 2015-10.2%
Q2 2015-2.5%
Q1 2015-3.9%
Q4 2014+9.3%
Q3 2014-5.3%
Q2 2014-7.6%
Q1 2014-7.2%
Q4 2013-1.2%
Q3 2013+6.7%
Q2 2013-7.0%
Q1 2013+9.1%
Q4 2012-3.2%
Q3 2012-8.7%
Q2 2012+14.5%
Q1 2011-2.2%
Q1 2012+2.8%
Q4 2009-1.7%
Q4 2011-1.7%
Q3 2010+0.1%
Q3 2011+0.1%
Q2 2011-1.0%
Q2 2010-1.0%
Q4 2010-1.0%
Q1 2010-4.7%

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