Meritage Homes (NYSE:MTH) saw its stock price plummet 9.09% in after-hours trading on Tuesday, following the release of its third-quarter 2025 financial results that fell short of analyst expectations. The homebuilder reported disappointing earnings and revenue figures, signaling potential challenges in the housing market.
The company announced quarterly earnings of $1.39 per share, missing the analyst consensus estimate of $1.63 by 14.57%. This represents a significant 47.94% decrease from earnings of $2.67 per share in the same period last year. On the revenue front, Meritage Homes reported quarterly sales of $1.400 billion, falling short of the analyst consensus estimate of $1.476 billion by 5.16%. This marks an 11.84% decrease compared to sales of $1.588 billion in the same quarter of the previous year.
Despite the earnings miss, Meritage Homes provided guidance for the fourth quarter, projecting diluted earnings per share in the range of $1.51 to $1.70. The company's adjusted EPS for Q3 stood at $1.55, still below the $1.63 estimate from IBES. With net income for the quarter at $99 million, investors will be closely watching how Meritage Homes navigates the challenging housing market conditions in the coming months.
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