Stock Story -
Homebuilder Meritage Homes (NYSE:MTH) will be reporting results tomorrow afternoon. Here's what investors should know.
Meritage Homes beat analysts' revenue expectations by 15.5% last quarter, reporting revenues of $1.47 billion, up 14.8% year on year. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' backlog sales estimates.
Is Meritage Homes a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Meritage Homes's revenue to be flat year on year at $1.56 billion, slowing from the 11% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.18 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Meritage Homes has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 9.1% on average.
Looking at Meritage Homes's peers in the home builders segment, some have already reported their Q2 results, giving us a hint as to what we can expect. KB Home's revenues decreased 3.1% year on year, beating analysts' expectations by 3.4%, and Lennar (NYSE:LEN) reported revenues up 9%, topping estimates by 2.5%. KB Home traded up 2.8% following the results while Lennar was down 5%.
Read the full analysis of KB Home's and Lennar's results on StockStory.
There has been positive sentiment among investors in the home builders segment, with share prices up 6.5% on average over the last month. Meritage Homes is up 16.5% during the same time and is heading into earnings with an average analyst price target of $195.2 (compared to the current share price of $193.4).
