NYSE$MTH

Meritage Homes Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$1.5B

Previous: $1.41B+6.3%
EPS (adj)

$3.13

Previous: $1.99+57.3%
Ending backlog (units)

5.7K

Previous: 4.7K+21.6%
Ending backlog value

$2.52B

Previous: $1.81B+38.8%
Average sales price - backlog

$443.00

Previous: $388.00+14.2%
Capital Expenditures

$7.75M

Previous: $5.16M+50.2%
Free Cash Flow

$88.9M

Previous: $152M-41.6%
Net Income

$237M

Previous: $153M+55.7%
Operating Income

$311M

Previous: $195M+59.4%
Gross Profit

$433M

Previous: $338M+28.1%
Cash & Equivalents

$618M

Previous: $746M-17.1%
Total Assets

$4.81B

Previous: $3.86B+24.4%
Stock-Based Comp

$5.63M

Previous: $4.27M+31.9%

Revenue & EPS history

Meritage Homes · Revenue · Quarterly

$1.5B

Q4 2021+6.3%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
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

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.

Tailwinds

  • 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.

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 Q4 2021

Historical avgQ4 2021

+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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