Why Meritage Homes Stock Popped 10% -- Then Dropped

Shares of Scottsdale, Arizona-based homebuilder Meritage Homes (NYSE: MTH) leapt out of the gate this morning, after the company reported fourth-quarter earnings last night. Earnings for the quarter came to $2.65 per diluted share, versus analyst expectations of $1.93 per share -- a beat -- and sales were ahead of expectations as well, at $1.14 billion, about 10% better than projected.

Up 10% in early trading, Meritage stock has since retraced a bit, but is still holding onto a 4% gain as of 11:30 a.m. EST.

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Source Fool.com