Last Call: Meritage shares fall as builder reports 1Q loss
NEW YORK—Meritage Homes Corp. shares fell Tuesday after the homebuilder reported a larger first-quarter loss than Wall Street expected.
The Scottsdale, Ariz., builder's shares lost 72 cents, or 3.3 percent, to $21.11 in afternoon trading. In the past year, the stock has ranged from $7.04 to $37.34.
Meritage reported a loss of $45.3 million, or $1.72 per share, as revenue fell 35 percent and the company booked pretax impairment charges totaling $60 million.
"We are hopeful that government-led actions to assist current homeowners and prospective home buyers will help bring about a recovery in homebuilding sooner than would otherwise be realized," Steven J. Hilton, the company's chairman and chief executive, said in a statement. "Until then, we will continue to focus on responsible balance sheet management, while prudently seeking attractive opportunities to generate superior returns in the coming years."
UBS analyst David Goldberg kept his "Neutral" rating on the stock, noting that Meritage did well to reduce its debt in the quarter. He said that most of the company's impairment charges -- which are taken to write down the value of inventory its books -- are likely behind it.
