The stock is likely to react negatively due to the double miss and implicit guidance cut. Monitor management's commentary on margin recovery and absorption rates during the earnings call for signs of stabilization. Increased incentives and weak order growth suggest pricing power remains under pressure.
Price Chart
Executive Summary
Meritage Homes (MTH) reported Q1 2026 earnings with diluted EPS of $0.82, missing consensus of $0.98 by 16.3%, and revenue of $1.108B, below estimates of $1.17B. The miss was driven by lower closing volume and margin compression due to incentives and higher lot costs, while guidance for full-year 2026 was lowered to 'at or within 5% of 2025 results', signaling weak expectations.
Key Financial Metrics
Key Facts
- Q1 2026 diluted EPS: $0.82 vs. consensus $0.98 (16.3% miss)
- Q1 2026 revenue: $1.108B vs. consensus $1.17B (5.3% miss)
- Home closing gross margin declined 450 bps YoY to 17.5%
- Homes closed down 13% YoY to 2,967 units
- Guidance for full-year 2026 updated to 'at or within 5% of 2025 results', implying no growth
- Company repurchased $130M in stock during the quarter
Financial Impact
EPS miss of $0.16 and revenue miss of $62M, with full-year guidance effectively lowered
Risk Factors
- Continued margin compression from elevated incentives
- Sluggish demand due to macro headwinds (mortgage rates, consumer sentiment)
- Risk of further guidance downward if absorption rates do not improve
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3279430 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 21d ago | Press Release | $64.22 $63.25 | ▼ −1.51% | ▼ −1.29% | $63.81 (−0.63%) |
Sep 9, 2026 23d ago | Court Ruling | $63.82 $63.96 | ▲ +0.22% | ▲ +0.88% | $63.81 (−0.01%) |
Aug 20, 2026 6w ago | Press Release | $71.05 $70.53 | ▼ −0.73% | ▼ −1.85% | $63.81 (−10.18%) |
Jul 29, 2026 9w ago | Press Release | $70.81 $72.26 | ▼ −2.05% | ▲ +1.58% | $63.81 (+9.88%) |
Jun 29, 2026 13w ago | 8-K | $83.85 $79.90 | ▼ −4.71% | ▼ −5.31% | $63.81 (−23.89%) |
Jun 11, 2026 16w ago | Press Release | $74.44 $75.73 | ▲ +1.73% | ▲ +1.06% | $63.81 (−14.27%) |
May 26, 2026 18w ago | Press Release | $64.79 $68.62 | ▲ +5.91% | ▲ +4.83% | $63.81 (−1.50%) |
Apr 22, 2026 23w ago | 8-K | $69.90 $67.02 | ▲ +4.12% | ▲ +5.60% | $63.81 (+8.71%) |
Apr 22, 2026 23w ago | Press Release | $69.90 $67.02 | ▲ +4.12% | ▲ +5.60% | $63.81 (+8.71%) |
Apr 7, 2026 25w ago | DEFA14A | $65.05 $65.03 | ▼ −0.03% | ▼ −3.55% | $63.81 (−1.90%) |
US Market Status
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