Homebuilder Meritage Homes (NYSE:MTH) will be reporting results tomorrow after the bell. Here’s what to look for.
Meritage Homes met analysts’ revenue expectations last quarter, reporting revenues of $1.60 billion, down 1.4% year on year. It was a mixed quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations but revenue guidance for next quarter missing analysts’ expectations significantly.
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 5.2% year on year to $1.57 billion, improving from the 16.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.20 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 10.3% on average.
Looking at Meritage Homes’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. KB Home delivered year-on-year revenue growth of 19.5%, beating analysts’ expectations by 0.8%, and D.R. Horton reported a revenue decline of 1.5%, topping estimates by 7.6%. KB Home traded up 4.9% following the results while D.R. Horton’s stock price was unchanged.
Read our full analysis of KB Home’s results here and D.R. Horton’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 4.2% on average over the last month. Meritage Homes is up 8.9% during the same time and is heading into earnings with an average analyst price target of $101.84 (compared to the current share price of $83).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.