A Look Ahead: Meritage Homes's Earnings Forecast
Benzinga Insights 9 months ago
Earnings
Meritage Homes (NYSE:MTH) is set to give its latest quarterly earnings report on Wednesday, 2026-01-28. Here's what investors need to know before the announcement.
Analysts estimate that Meritage Homes will report an earnings per share (EPS) of $1.53.
The market awaits Meritage Homes's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Overview of Past Earnings
During the last quarter, the company reported an EPS missed by $0.32, leading to a 5.57% drop in the share price on the subsequent day.
Here's a look at Meritage Homes's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.71 | 2.01 | 1.68 | 2.20 |
| EPS Actual | 1.39 | 2.04 | 1.69 | 2.36 |
| Price Change % | -6.00 | -5.00 | 1.00 | 3.00 |
Performance of Meritage Homes Shares
Shares of Meritage Homes were trading at $71.7 as of January 26. Over the last 52-week period, shares are down 10.71%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Insights on Meritage Homes
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Meritage Homes.
Analysts have given Meritage Homes a total of 8 ratings, with the consensus rating being Neutral. The average one-year price target is $87.75, indicating a potential 22.38% upside.
Comparing Ratings with Competitors
This comparison focuses on the analyst ratings and average 1-year price targets of Champion Homes, Taylor Morrison Home and KB Home, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Champion Homes, with an average 1-year price target of $95.25, suggesting a potential 32.85% upside.
- Analysts currently favor an Neutral trajectory for Taylor Morrison Home, with an average 1-year price target of $82.5, suggesting a potential 15.06% upside.
- Analysts currently favor an Neutral trajectory for KB Home, with an average 1-year price target of $63.1, suggesting a potential 11.99% downside.
Comprehensive Peer Analysis Summary
The peer analysis summary provides a snapshot of key metrics for Champion Homes, Taylor Morrison Home and KB Home, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Meritage Homes | Neutral | -10.72% | $271.63M | 1.88% |
| Champion Homes | Outperform | 10.95% | $187.93M | 3.69% |
| Taylor Morrison Home | Neutral | -1.18% | $476.62M | 3.29% |
| KB Home | Neutral | -15.28% | $292.90M | 2.59% |
Key Takeaway:
Meritage Homes ranks in the middle for consensus rating. It ranks at the bottom for revenue growth. It ranks in the middle for gross profit. It ranks at the bottom for return on equity.
Unveiling the Story Behind Meritage Homes
Meritage Homes Corp is engaged as a designer and builder of single-family attached and detached homes. It has operations in three regions: West, Central, and East, comprising ten states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Utah. The company operates with two principal business segments: homebuilding and financial services. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer services, and the financial services segment offers title and escrow, mortgage, and insurance services. The company generates key revenue from the homebuilding segment.
Key Indicators: Meritage Homes's Financial Health
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Meritage Homes's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2025, the company experienced a revenue decline of approximately -10.72%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.97%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Meritage Homes's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.88%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Meritage Homes's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.28%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Meritage Homes's debt-to-equity ratio is below the industry average. With a ratio of 0.36, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for Meritage Homes visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.