Homebuilder Meritage Homes (NYSE:MTH) will be announcing earnings results this Wednesday after the bell. Here’s what to expect.
Meritage Homes beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $1.36 billion, down 7.5% year on year. It was a mixed quarter for the company, with full-year revenue guidance beating analysts’ expectations but a significant miss of analysts’ backlog estimates.
Is Meritage Homes a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Meritage Homes’s revenue to decline 6.9% year on year to $1.59 billion, a reversal from the 8.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.97 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Meritage Homes has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 7.4% on average.
Looking at Meritage Homes’s peers in the industrials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. KB Home’s revenues decreased 10.5% year on year, beating analysts’ expectations by 1.6%, and Lennar reported a revenue decline of 4.4%, topping estimates by 1.1%. KB Home’s stock price was unchanged after the resultswhile Lennar was down 4.4%.
Read our full analysis of KB Home’s results here and Lennar’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 5.9% on average over the last month. Meritage Homes is up 4.5% during the same time and is heading into earnings with an average analyst price target of $90.53 (compared to the current share price of $69.95).
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