Q2 2024 Meritage Homes Corp Earnings Call Transcript
Key Points
- Meritage Homes Corp (MTH) reported its highest second-quarter sales orders of 3,799 homes, driven by strong demand for its products and price points.
- The company achieved a backlog conversion rate of 136%, resulting in 4,118 home deliveries and home closing revenue of $1.7 billion.
- Meritage Homes Corp (MTH) received several accolades, including the Avid Cup for exceptional customer satisfaction and the EPA Market Leader award for certified homes.
- The company’s new strategy focusing on quick-turn, move-in ready homes has led to higher absorption rates and improved financial performance.
- Meritage Homes Corp (MTH) increased its book value per share by 16% year-over-year to $134.41 and generated a return on equity of 18.3%.
- The company anticipates a slower sales pace in the second half of the year due to seasonality and the holiday season.
- Meritage Homes Corp (MTH) expects to use more incentives in the back half of the year to maintain sales pace, which could impact margins.
- The average selling price (ASP) on orders decreased by 6% year-over-year due to a larger mix of entry-level homes and orders from Eastern markets.
- The company’s ending backlog continues to decline, with a reduction from about 3,800 homes in June 2023 to approximately 2,700 homes in June 2024.
- Meritage Homes Corp (MTH) faces ongoing mortgage rate volatility, which could impact future demand and financial performance.
Greetings and welcome to the Meritage Homes second-quarter 2024 analyst call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Emily Tadano, Vice President of Investor Relations and ESG. Thank you. You may begin.
Thank you, operator. Good morning, and welcome to our analyst call to discuss our second quarter 2024 results. We issued the press release yesterday after the market closed. You can find it along with the slides we'll refer to during this call on our website at investors.meritagehomes.com or by selecting the Investor Relations link at the bottom of our home page. Please refer to slide 2, caution you that our statements during this call as well as in the earnings release and accompanying slides contain forward-looking statements.
Those and any other projections represent the current opinions of management, which are subject to change at any time, and we assume no obligation to update
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