Meritage Homes reports Q4 EPS $5.38, consensus $5.17

Reports Q4 revenue $1.64B, consensus $1.53B. Orders of 2,892 homes for the fourth quarter of 2023 increased 60% year-over-year due to a 64% increase in average absorption pace to 3.6 per month from 2.2 per month in the fourth quarter of 2022 and a 1% decrease in average communities. “Healthy homebuying demand in the fourth quarter of 2023 led to Meritage’s strong orders finish to the year, as interest rates retreated below 7% and consumer confidence started to recover. The underlying macro fundamentals indicate favorable need-based demand for millennials and now Generation Z right behind them, which together with the continuing shortage of existing homes for sale, are driving buyers to new homes. We capitalized on these market conditions utilizing our available move-in ready inventory to grow our orders year-over-year by 60% for the fourth quarter of 2023 and 12% for full year 2023,” said Steven Hilton, executive chairman of Meritage Homes.