Meritage Homes Corporation (NYSE: MTH) reported Q3 EPS of $0.79, in-line with the analyst estimate of $0.79. Revenue for the quarter came in at $661.9 million versus the consensus estimate of $628.36 million.

Meritage Homes Corporation sees Q4 2015 EPS of $1.10-$1.35, versus the consensus of $1.51.

MANAGEMENT COMMENTS

"Our third quarter results reflect strong order growth in our east and west regions this year, which drove a 21% increase in our third quarter home closing revenue," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "I am pleased that we were able to deliver more than 1,700 homes to our customers during the quarter despite encountering headwinds from labor shortages and weather-related challenges in some of our markets.

"Rising construction costs driven by labor shortages have pressured our home closing gross margin this year, which was 19% for the third quarter," said Mr. Hilton. "However, we expect to see our margins increase over the next 12-18 months as we improve the margins in our East region, made up primarily of new markets we have entered in recent years, which have not yet achieved anticipated operating efficiencies.

"We finished the third quarter with 250 actively selling communities -- more than we have ever had in our 30-year history, which positions us for additional growth in 2016. While recent order volumes may be less robust than expected and conditions vary by market, they remain healthy overall. We believe our expanded position in many of the best markets will provide for more consistent performance over the long term," continued Mr. Hilton.

"As we enter our fourth quarter, we are doing our best to complete and close homes by year-end where schedules have slipped due to weather and labor issues, so that our customers can move in as soon as possible. Based on our backlog and current costs, we anticipate fourth quarter home closing revenue of approximately $750-800 million and diluted EPS of approximately $1.10-1.35 for the quarter."

For earnings history and earnings-related data on Meritage Homes Corporation (MTH) click here.