Meritage Homes (NYSE:MTH) saw its stock price plummet 9.09% in after-hours trading on Tuesday following the release of its third-quarter earnings report, which fell short of analyst expectations on multiple fronts.
The homebuilder reported 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 an adjusted basis, earnings per share came in at $1.55, still below the $1.63 estimate. The company's quarterly sales also disappointed, coming in at $1.400 billion, 5.16% below the analyst consensus estimate of $1.476 billion and marking an 11.84% decrease from $1.588 billion in the year-ago quarter.
The weaker-than-expected results reflect challenges in the housing market, potentially including higher interest rates and affordability concerns. Investors will likely be closely watching Meritage Homes' outlook for signs of recovery. The company provided guidance for the fourth quarter, projecting diluted earnings per share in the range of $1.51 to $1.70. As the market digests this information, the stock's performance in the coming days may provide further insight into investor sentiment regarding the homebuilding sector.
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