NYSE$MTH

Meritage Homes Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Meritage Homes reported solid results driven by a pivot to affordable, quick-turning move-in ready homes and effective capital allocation strategy, resulting in record backlog conversion and increased book value per share.

Meritage Homes reported a slight year-over-year increase in home closings and a record backlog conversion rate, driven by a pivot to affordable, quick-turning move-in ready homes. Despite a decrease in average sales price, the company achieved solid financial results, including diluted EPS of $5.34. The company continued to invest in growth through land acquisition and development while also returning cash to shareholders through dividends and share repurchases.

  • Home closings increased by 8% year-over-year, with a record 145% backlog conversion rate.
  • Diluted EPS reached $5.34, supported by a home closing gross margin of 24.8% and SG&A leverage of 9.9%.
  • The company invested $659.4 million in land acquisition and development, adding nearly 7,800 net new lots under control.
  • Cash dividends and share repurchases totaled $57.1 million, reflecting a focus on returning capital to shareholders.

Headline financials

Total Revenue

$1.59B

Previous: $1.61B-1.5%
EPS (adj)

$2.67

Previous: $2.99-10.7%
Capital Expenditures

-$8.02M

Previous: $10.1M-179.5%
Free Cash Flow

-$100M

Previous: $94.1M-206.3%
Net Income

$196M

Previous: $222M-11.6%
Operating Income

$250M

Previous: $286M-12.5%
Gross Profit

$390M

Previous: $430M-9.4%
Stock-Based Comp

$8.47M

Previous: $6.16M+37.6%

Revenue & EPS history

Meritage Homes · Revenue · Quarterly

$1.59B

Q3 2024-1.5%vs Q3 2023
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

The Company is providing the following guidance for the fourth quarter of 2024, based on year to date results and current market conditions:

Tailwinds

  • Home closing volume between 3,750-3,950 units
  • Home closing revenue between $1.50-1.59 billion
  • Home closing gross margin between 22.5-23.5%
  • Effective tax rate approximately 22.5%
  • Diluted EPS between $4.10-4.60

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 2024

Historical avgQ3 2024

+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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