Meritage Homes Corp ( (MTH) ) has realeased its Q3 earnings. Here is a breakdown of the information Meritage Homes Corp presented to its investors.
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Meritage Homes Corporation, one of the largest homebuilders in the United States, specializes in constructing energy-efficient and affordable homes, predominantly catering to entry-level and first move-up buyers across various states including Arizona, California, Texas, and Florida.
Meritage Homes reported its third-quarter 2024 results, highlighting an 8% year-over-year increase in home closings despite a 2% decline in home closing revenue. The company achieved a record backlog conversion rate, emphasizing its strategic shift towards affordable, quick-turning move-in-ready homes.
The company’s third-quarter performance saw an increase in home orders by 1% compared to the previous year, although the average sales price for these orders decreased by 6%. Net earnings for the quarter dropped by 12% to $196 million, primarily due to lower home closing revenue and gross profit margins, which were impacted by higher lot costs and increased financing incentives. Despite these challenges, Meritage Homes maintained strong liquidity with substantial cash reserves and low net debt.
Looking forward, Meritage Homes remains optimistic about future homebuyer demand, driven by favorable demographics and a continued undersupply of homes. Management expects these factors, coupled with potential lower mortgage rates, to support growth in market share and maintain momentum into the next quarter.
