Homebuilder Meritage 1Q Earnings Off 81%

Scottsdale, AZ, April 26, 2007--Home builder Meritage Homes reported earnings in the first quarter that dropped 81 percent, but the company still solidly beat analysts estimates.

Net income in the quarter was off to $15.1 million, or $0.57 per share, from $79.7 million, or $2.86 per share in the prior year quarter. Revenue fell 32 percent to $577.5 million from $847.3 million in the first quarter of 2006.

Analysts has forecast EPS of $0.16 per share on revenue of $467.10 million.

Home closing revenue fell 32 percent because of fewer closings and a slightly lower price per closing.

The company said its results reflected slower housing demand and difficult comparisons with its 2006 results.

Steven J. Hilton, chairman and chief executive said, “Although home closing revenue returned to levels achieved two years ago, our margins were much lower due to competitive pricing pressures and additional land-related write-offs."