Beazer Homes USA (NYSE:BZH) Issues Earnings Results

Beazer Homes USA (NYSE:BZH) posted its quarterly earnings results on Thursday. The construction company reported ($1.13) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.49) by ($0.64), FiscalAI reports. The company had revenue of $363.49 million for the quarter, compared to analyst estimates of $423.23 million. Beazer Homes USA had a net margin of 0.44% and a return on equity of 2.10%. Beazer Homes USA’s revenue was down 22.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.10 earnings per share.

Here are the key takeaways from Beazer Homes USA’s conference call:

• Q1 was weak with 763 homes sold (1.5 sales per community per month), adjusted EBITDA of negative $11.2M and diluted loss per share of $1.13, which included a one?time $6.4M pre?tax litigation charge.
• Management reports improving buyer traffic since mid?December and January sales pace in line with the prior year, giving a plausible path to stronger H2 sales if market conditions stabilize.
• The company expects roughly 300 basis points of homebuilding gross margin expansion by year?end driven by >$10,000 per?home direct cost reductions, favorable mix from newer communities, and more to?be?built sales.
• Solar?Included Homes are being expanded (targeting ~20% of business by year?end), with installation costs reduced to under $2/kWh and early results showing strong buyer enthusiasm and above?average margins in those communities.
• Capital allocation is focused on selling ~$150M of non?strategic land to fund accretive share repurchases ($72M remaining authorization), with management targeting 5%–10% book value per share growth by year?end while keeping net leverage at or below ~40%.

Beazer Homes USA Stock Down 10.9%

BZH opened at $21.58 on Friday. The firm has a market cap of $636.68 million, a P/E ratio of 71.92, a PEG ratio of 1.03 and a beta of 2.18. The business’s fifty day simple moving average is $22.23 and its 200 day simple moving average is $23.27. Beazer Homes USA has a 52 week low of $17.37 and a 52 week high of $27.29. The company has a quick ratio of 2.07, a current ratio of 16.21 and a debt-to-equity ratio of 0.82.

Beazer Homes USA News Roundup

Here are the key news stories impacting Beazer Homes USA this week:

• Positive Sentiment: Liquidity and balance-sheet metrics provide some cushion — BZH shows a high current ratio and a quick ratio above 2, which may help weather a weak housing cycle. (Background company filings)
• Neutral Sentiment: Management hosted an earnings call and provided slides/notes; investors will parse the call transcript for details on backlog, cancellations and how management plans to adjust community growth plans. Earnings Call Transcript
• Negative Sentiment: Big EPS and revenue miss — Beazer reported a Q1 loss materially worse than expected (about a $0.90–$1.13 loss vs. consensus near -$0.49) and revenue down ~22% year-over-year, signaling weaker demand. Why Beazer Homes Stock Just Crashed
• Negative Sentiment: Margin compression — gross margins dropped (reported around mid-teens), hurting profitability and implying cost or pricing pressure even as volumes fall. Beazer Homes: Q1 Miss Adds To Value Trap Fears
• Negative Sentiment: Operational and demand risks highlighted — analysts and SA commentary point to declining orders, rising cancellations and weaker housing demand that undermine the company’s aggressive community growth and buyback posture. Value Trap Fears
• Negative Sentiment: Market reaction and volume — the stock is trading down on heavy volume, reflecting investor sell-side and retail concern after the miss and the outlook/strategy questions. (Market trading data and press release) Press Release / Slide Deck

Analyst Ratings Changes

Several equities analysts recently issued reports on BZH shares. Zacks Research raised Beazer Homes USA from a “strong sell” rating to a “hold” rating in a report on Friday, January 16th. Wall Street Zen cut Beazer Homes USA from a “hold” rating to a “strong sell” rating in a research report on Saturday. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Beazer Homes USA in a research report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Beazer Homes USA presently has an average rating of “Hold” and a consensus target price of $31.33.

Institutional Investors Weigh In On Beazer Homes USA

Several hedge funds have recently modified their holdings of BZH. Comerica Bank acquired a new position in shares of Beazer Homes USA in the third quarter valued at approximately $48,000. Osaic Holdings Inc. grew its stake in Beazer Homes USA by 454.9% in the 2nd quarter. Osaic Holdings Inc. now owns 2,103 shares of the construction company’s stock worth $47,000 after acquiring an additional 1,724 shares during the period. Aquatic Capital Management LLC acquired a new position in Beazer Homes USA in the 3rd quarter valued at $70,000. Tower Research Capital LLC TRC lifted its stake in shares of Beazer Homes USA by 123.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,500 shares of the construction company’s stock worth $78,000 after purchasing an additional 1,933 shares during the period. Finally, State of Wyoming acquired a new stake in shares of Beazer Homes USA during the second quarter worth $89,000. 85.65% of the stock is owned by institutional investors and hedge funds.

Beazer Homes USA Company Profile

Beazer Homes USA, Inc is a national homebuilder specializing in the design, construction and sale of single-family homes. The company serves a diverse range of buyers, offering product lines that span from entry-level homes to move-up and active adult communities. In addition to its core homebuilding operations, Beazer provides mortgage financing, title and closing services through its subsidiaries, aiming to simplify the home-buying process and manage risk across the transaction.

Operating in key growth markets across the United States, Beazer Homes maintains a presence in more than a dozen metropolitan areas, including select markets in the Southeast, Southwest and West.