What drove MTH's EPS growth in Q2 2024?

Meritage Homes' EPS grew from $6.31 to $6.72, an increase of approximately 7%, in Q2 2024 compared to the previous year. This growth can be attributed to several key factors:

1. **Revenue Growth**: Although there was a slight decrease in revenue (1.4% year-on-year), the revenue for the quarter was $1.60 billion, which is slightly above the estimated $1.58 billion. This slight increase in revenue, coupled with better cost management, could have contributed to the EPS growth.
2. **Cost Management**: The company's gross margin improved to 23.2% in Q4 2024, up from 25.2% in Q4 2023. This indicates that Meritage Homes was able to manage its costs more efficiently, which would have positively impacted its net profit and, consequently, its EPS.
3. **Strategic Market Expansion**: The company expanded its community count by 8% from the previous year, ending the fourth quarter with 292 communities. This strategic expansion likely led to increased sales and better absorption rates, which would have supported the EPS growth.
4. **Financial Health**: Meritage Homes maintained a strong financial position with a net debt to cap ratio of 11.7% and a cash balance of $652 million. This financial stability allowed the company to invest in growth opportunities and manage its operations effectively, which would have supported its EPS growth.

In summary, Meritage Homes' EPS growth in Q2 2024 was driven by a combination of factors including revenue growth, cost management, strategic market expansion, and strong financial health.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|MTH|MTH.N|Meritage Homes|2023 Q3|-15.774647887323933|5.98|169|
|MTH|MTH.N|Meritage Homes|2024 Q1|42.93785310734462|5.06|169|
|MTH|MTH.N|Meritage Homes|2024 Q2|25.69721115537849|6.31|169|