Meritage stock shoots higher on strong 1Q results

By Kristena Hansen | Phoenix Business Journal

Shares of stock for Scottsdale-based Meritage Homes Corp. (NYSE: MTH) were climbing steadily higher Wednesday following the home builder’s strong first-quarter earnings report this morning.

Those earnings boasted a staggering 62 percent spike in revenue, 35 percent jump in orders and a nearly 40 percent surge in closings from a year earlier.

Meritage was trading at $48.54 per share mid afternoon, up 7.65 percent from the previous day’s closing price. That’s knocking on the door of a 52-week high.

meritage-homes-co-logoThe home builder closed the first quarter with revenues around $330 million, up 62 percent from the same time last year, according to the company’s 8-K filing with the Securities and Exchange Commission on Wednesday.

Meritage attributed the revenue jump to the 1,052 homes it closed during the three-month period at an average sales price of $314,000, up 17 percent year-over-year.

The revenue jump and its 19.5 percent home closing gross margin — up from 17.2 percent a year ago — enabled Meritage to rake in around $12 million in net income for the quarter. One year ago, the home builder had taken a $4.8 million loss.

Meritage also opened 24 new communities last quarter, ending the period with 168 active communities.

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If you’d like to discuss real estate matters, contact Rose Law Group founder Jordan Rose, jrose@roselawgroup.com

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