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Meritage Homes Beats Up on Analysts Yet Again

Wednesday - 7/24/2013, 2:00am  ET

Meritage Homes reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Meritage Homes beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.

Margins increased across the board.

Revenue details
Meritage Homes recorded revenue of $450.0 million. The 13 analysts polled by S&P Capital IQ predicted sales of $413.7 million on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $282.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.78. The eight earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. Non-GAAP EPS of $0.78 for Q2 were 169% higher than the prior-year quarter's $0.29 per share. GAAP EPS of $0.74 for Q2 were 208% higher than the prior-year quarter's $0.24 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 21.2%, 260 basis points better than the prior-year quarter. Operating margin was 9.3%, 480 basis points better than the prior-year quarter. Net margin was 6.2%, 340 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $499.2 million. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $1.81 billion. The average EPS estimate is $2.35.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Meritage Homes is outperform, with an average price target of $51.58.

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This article was originally published as Meritage Homes Beats Up on Analysts Yet Againon Fool.com

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