NYSE$MTH
Meritage Homes Corp · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Meritage Homes reported third quarter results, achieving highest quarterly home closing revenue and record SG&A leverage.
Meritage Homes reported a strong third quarter with a 35% increase in diluted EPS, driven by record home closing revenue and SG&A leverage. Despite a challenging housing market, the company achieved significant growth in earnings and maintained a healthy balance sheet.
- Home closing revenue increased by 25% year-over-year to $1.6 billion.
- Diluted EPS rose by 35% year-over-year, reaching $7.10.
- SG&A leverage improved by 120 bps to 8.1% of home closing revenue.
- Sales orders decreased by 33% year-over-year due to elevated cancellations.
Headline financials
Revenue & EPS history
Meritage Homes · Revenue · Quarterly
$1.58B
Revenue by segment
Meritage Homes · $1.58B total across 3 segments · Q3 2022
- Home closing revenue$1.57B—99.0%
- Land closing revenue$8.99M—0.6%
- Financial services revenue$6.31M—0.4%
Forward guidance
Meritage Homes projects 4,300-4,700 home closings for the fourth quarter of 2022, generating $1.85-2.10 billion in revenue with a gross margin around 25%. Diluted EPS is expected to be in the range of $6.50-7.40.
Tailwinds
- Projecting 4,300-4,700 home closings.
- Anticipating quarterly home closing revenue of $1.85-2.10 billion.
- Projecting an effective tax rate of 23.5%.
- Expecting diluted EPS to be in the range of $6.50-7.40.
- Committed to growing Meritage's market share and maximizing shareholder return.
Headwinds
- Home closing gross margin is projected to be around 25%, reflecting increased incentives.
- Continuation of rapidly increasing mortgage interest rates.
- Expectations of further significant increases to come.
- Inflation and uncertainty in the economy.
- Building materials and labor shortages are still delaying a return to normal cycle times.
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 Q3 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
| Quarter | Report date | Reaction (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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