Meritage Homes (NYSE:MTH) Posts Earnings Results, Misses Estimates By $0.06 EPS

Meritage Homes (NYSE:MTH) issued its quarterly earnings results on Wednesday. The construction company reported $1.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.06), FiscalAI reports. The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.29 billion. Meritage Homes had a return on equity of 7.13% and a net margin of 6.11%. The firm’s revenue was down 17.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.39 earnings per share.

Meritage Homes Trading Up 3.0%

Shares of MTH stock traded up $1.89 on Thursday, hitting $63.91. 269,312 shares of the stock traded hands, compared to its average volume of 932,886. The stock has a market capitalization of $4.16 billion, a PE ratio of 13.37, a PEG ratio of 4.81 and a beta of 1.33. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.97 and a current ratio of 1.97. The firm’s 50-day moving average price is $64.62 and its two-hundred day moving average price is $69.13. Meritage Homes has a twelve month low of $56.66 and a twelve month high of $85.38.

Meritage Homes Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 3.0%. Meritage Homes’s payout ratio is 40.17%.

Analyst Upgrades and Downgrades

MTH has been the topic of a number of research reports. Zacks Research downgraded shares of Meritage Homes from a “hold” rating to a “strong sell” rating in a report on Thursday, October 8th. UBS Group restated a “buy” rating and issued a $88.00 price target (up from $86.00) on shares of Meritage Homes in a research report on Friday, July 31st. Zelman & Associates cut shares of Meritage Homes from an “outperform” rating to a “neutral” rating in a research report on Tuesday, July 7th. The Goldman Sachs Group set a $82.00 price target on shares of Meritage Homes and gave the stock a “buy” rating in a report on Monday, October 12th. Finally, Wall Street Zen raised shares of Meritage Homes from a “sell” rating to a “hold” rating in a research report on Saturday, July 25th. Four investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Meritage Homes presently has a consensus rating of “Hold” and an average price target of $73.56.

Key Meritage Homes News

Here are the key news stories impacting Meritage Homes this week:

• Positive Sentiment: Meritage Homes ended the quarter with $677 million in cash and equivalents, repurchased approximately 757,000 shares for $55 million, and paid $31 million in dividends. These actions provide some support for shareholder returns and the balance sheet. Meritage Homes Q3 Earnings Fall 32% as Closing Revenue Drops 17%
• Neutral Sentiment: Institutional investor activity was mixed in the latest reported quarter, with 196 investors adding MTH shares and 210 reducing their positions. This suggests differing views on the housing market and Meritage’s recovery prospects. Meritage Homes Q3 Earnings Fall 32% as Closing Revenue Drops 17%
• Negative Sentiment: Third-quarter earnings per share came in at $1.11, below the $1.17-$1.18 analyst consensus and down from $1.39 a year earlier. Revenue totaled about $1.17 billion, missing the approximately $1.29 billion estimate and declining 17.5% year over year. Meritage Homes Lags Q3 Earnings and Revenue Estimates
• Negative Sentiment: Operating trends were also weak: home closings fell 14% to 3,187, orders dropped 15% to 3,083, and the average closing price decreased 4% to $365,000. Closing gross margin narrowed to 17.4% from 19.1%, indicating pressure from pricing, incentives, or construction costs. Meritage Homes Reports Third Quarter 2026 Results

About Meritage Homes

Meritage Homes Corporation is a residential construction company that designs and builds single-family homes in the United States. The company primarily serves entry-level and first-time homebuyers, offering homes in a range of floor plans and communities designed around affordability, energy efficiency and modern features.

Meritage Homes sells homes through its own communities and provides related services, including land acquisition and development, home design, construction, sales and customer support.