Meritage Homes’ Q3 Earnings: Higher Deliveries and Pricing Boost Revenues

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Meritage Homes ($NYSE:MTH) is a leading homebuilder in the United States. Meritage Homes builds a variety of homes, including single-family, townhomes, and condominiums. The company’s Q3 earnings report is due out soon, and analysts are expecting higher revenues thanks to higher deliveries and pricing.

Despite macroeconomic uncertainties, Meritage Homes has been able to boost its top line by meeting consumer demand. Looking ahead, the company is well-positioned to continue its growth trajectory.

Earnings

In the latest earnings report for the fiscal year 2022 second quarter ending June 30, Meritage Homes earned a total revenue of 5484.9 million dollars and a net income of 905.6 million dollars. Compared to the previous year, this represents a 6.6% increase in total revenue and a 22.8% increase in net income. Meritage Homes‘ total revenue has grown from 4506.3 million dollars to 5484.9 million dollars over the last three years.

The company has seen strong growth in both deliveries and pricing, which has boost their revenues. With the current trend of strong housing market conditions, Meritage Homes is poised for continued success in the coming quarters.

Share Price

Meritage Homes is a homebuilding company that trades on the New York Stock Exchange under the ticker symbol MTH. Meritage Homes builds single-family detached homes and sells them through company-owned and operated sales centers, as well as through independent brokerages. The company’s revenues are derived from the sale of homes, as well as from the sale of land and home sites. Meritage Homes recognizes revenue from home sales when the home is delivered to the customer and the customer has accepted the home. The company attributed the increase in revenues to higher home deliveries and pricing.

Meritage Homes attributed the increase in gross margin to higher home prices and mix, as well as to a decrease in land and development costs. The company attributed the decrease in operating expenses as a percentage of revenues to higher revenues. The company attributed the increase in net income to higher revenues and gross margin.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on MERITAGE HOMES are made simple by VI app. According to VI Star Chart MERITAGE HOMES is strong in asset, growth, medium in profitability and weak in dividend. MERITAGE HOMES is classified as ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. what type of investors may interested in such company. MERITAGE HOMES has an intermediate health score of 6/10 considering its cashflows and debt, might be able to safely ride out any crisis without the risk of bankruptcy.

VI Peers

Beazer Homes USA Inc is a privately held company that is the tenth largest homebuilder in the United States. Skyline Champion Corp is a publicly traded company and the fifth largest builder in the United States. Taylor Morrison Home Corp is a publicly traded company and is the seventh largest homebuilder in the United States.

– Beazer Homes USA Inc ($NYSE:BZH)

Beazer Homes USA Inc is one of the largest homebuilders in the United States. The company has a market cap of 311.19M as of 2022 and a return on equity of 15.8%. Beazer Homes builds and sells single-family homes, townhomes, and condominiums in the United States. The company was founded in 1985 and is headquartered in Atlanta, Georgia.

– Skyline Champion Corp ($NYSE:SKY)

Skyline Champion Corporation is an American publicly traded company and one of the largest manufacturers of manufactured homes, modular homes, and park model RVs in North America. The company is headquartered in Elkhart, Indiana.

As of 2022, Skyline Champion Corporation has a market capitalization of 3.08 billion and a return on equity of 30.7%. The company’s primary business is the design, production, and sale of manufactured homes, modular homes, and park model RVs. Skyline Champion Corporation operates in three segments: Factory-Built Housing, Modular Buildings, and Park Models.

– Taylor Morrison Home Corp ($NYSE:TMHC)

Taylor Morrison Home Corporation is a homebuilder and land developer in the United States. The Company’s segments include Homebuilding and Financial Services. The Homebuilding segment builds and sells single-family detached and attached homes designed primarily for the entry-level and first move-up markets. This segment also provides mortgage banking and title services to homebuyers in its communities. The Financial Services segment provides mortgage banking and title services to third-party homebuyers in communities where it does not build homes, as well as to homebuyers of Taylor Morrison homes. The Company operates in Arizona, California, Colorado, Florida, Georgia, Illinois, North Carolina and Texas.

Summary

If you’re looking for a stable and well-performing stock in the homebuilding industry, Meritage Homes is a great option to consider. The company has a strong track record of delivering quality homes and generating solid financial results. In addition, Meritage Homes has a strong presence in key markets across the United States, which gives it a diversified revenue stream.