US-based homebuilder Meritage Homes Corp. (MTH) on Monday reported a narrower loss for the third quarter, mainly benefitting from 76% reduction in pre-tax real estate-related impairment charges.
For the latest quarter, the company posted a loss of $17.79 million or $0.56 per share, narrower than a loss of $144.01 million or $4.69 per share reported in the year-ago quarter. Pre-tax loss was $17.64 million, versus a loss of $61.58 million in earlier year. Adjusted pre-tax loss was $4.39 million, compared to a loss of $6.5 million in the preceding year.
On average, nine analysts polled by Thomson Reuters expected the company to report a loss of $0.63 per share. Analysts' estimates typically exclude special items.
The company said the improved results in 2009 benefited from lower pre-tax real estate-related impairment charges of $13 million in 2009, compared to $55 million of similar charges in 2008.
Three-month total closing revenue plunged to $231.82 million from $374.77 million in the previous year. Seven Wall Street analysts anticipated revenues of $233.41 million.
Segment-wise, home closing revenue fell 38% year-over-year to $231.82 million from $372.91 million, hurt by 29% fewer homes closed, coupled with a 13% lower average closing price of around $228 thousands in the third quarter of 2009, in comparison with approximately $262 thousands in the third quarter of 2008. Land closing revenue was absent in the most recent quarter, whereas in the prior year, the company recorded land closing revenue of $1.86 million.
Total closing gross profit for the third quarter was $22.9 million, compared to gross loss of $6.26 million in the corresponding period last year.
For the first nine months, Meritage Homes' net loss narrowed to $109.42 million or $3.52 per share from $212.79 million or $7.37 million reported in the same period last year.
Total closing revenue for the nine-month period dipped to $684.49 million from $1.12 billion in the year-ago period.
Shares of MTH closed Monday's regular trade at $19.21, down $0.47 or 2.39%, on a volume of 778K shares. In the after hours, the company's shares rose $0.29 or 1.51% to $19.50.
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