What Should You Anticipate From Meritage Homes’s (MTH) Fourth Quarter Earnings

Meritage Homes Set to Announce Earnings

Meritage Homes (NYSE:MTH), a leading homebuilder, is scheduled to release its latest earnings report this Wednesday after the market closes. Here’s a summary of key points investors should keep in mind.

Recent Performance Overview

In the previous quarter, Meritage Homes fell short of Wall Street’s revenue projections by 3.4%, posting $1.42 billion in revenue—a decline of 10.8% compared to the same period last year. The company also missed expectations for adjusted operating income, making it a challenging quarter overall.

Should You Buy or Sell Ahead of Earnings?

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Analyst Expectations for This Quarter

For the upcoming quarter, analysts predict Meritage Homes will see its revenue drop by 8% year-over-year to $1.49 billion, which would mark a further slowdown from the 2.3% decrease recorded in the same quarter last year. Adjusted earnings per share are forecasted at $1.52.

Meritage Homes Total Revenue

Analyst Sentiment and Track Record

Over the past month, analysts have largely maintained their forecasts, indicating expectations for steady performance as earnings approach. Notably, Meritage Homes has only missed revenue estimates once in the past two years, typically surpassing projections by an average of 4.6%.

Industry Peers: Recent Results

Several other homebuilding companies have already shared their Q4 results, offering some insight into sector trends. D.R. Horton reported a 9.5% year-over-year revenue decline but still exceeded analyst estimates by 3.4%. KB Home saw its revenue fall by 15.3%, yet also beat expectations by 2.3%. Following these announcements, D.R. Horton’s stock rose 1.4%, while KB Home’s shares dropped 8.5%.

Market Sentiment and Price Targets

Investor confidence in the homebuilding sector has been strong, with average share prices climbing 8.7% over the past month. Meritage Homes’ stock has gained 8% in the same period. Analysts currently have an average price target of $85 for Meritage Homes, compared to its present share price of $71.65.

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