What Should We Expect From Meritage Homes Corporation’s (MTH) Earnings Over The Next Year?
Meritage Homes Corporation (NYSE:MTH) is predicted to grow its earnings per share by a robust double-digit 31.18% over the next three years. Presently, with an EPS of $3.833, we can expect an upcoming EPS of $5.028. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. Check out our latest analysis for Meritage Homes
What can we expect from Meritage Homes Corporation (NYSE:MTH) in the future?
MTH is covered by 10 analysts who by consensus are expecting earnings to increase from today’s level of $3.833 to $5.028 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 31.18% over the next few years, which is an optimistic outlook in the near term. During the same time we should see the revenue grow from $3,121M to $3,819M and profits (net income) are predicted to slightly grow from $154M to $202M in the next couple of years, growing by 31.18%. Margins are expected to be muted at a single digit rate of 5.38%.
Is this similar growth to the past?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. MTH’s earnings growth the past couple of years was 26.74% which indicates that the company’s past performance is supportive of a strong continuation. This means MTH has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For MTH, I’ve compiled three relevant factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Future Earnings: How does MTH’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MTH? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
