Meritage Homes (MTH) recently reported strong second-quarter results, with its EPS of $2.38 beating consensus estimates by $0.85 and revenues of $1.03 bn beating consensus estimates by $147.54 mn. The company's second-quarter orders were up 32% y-o-y, and absorptions per community were up 42% y-o-y. There was a dramatic intra-quarter turnaround in new orders. While April orders were down 15%, new orders in May and June were up 44% and 66%, respectively. As expected, entry-level homes was the strongest category followed by the first move up.
There are several factors driving this strong performance. On