Beazer Homes stock rises as Q2 earnings beat estimates

Published 01/05/2025, 22:22
Beazer Homes stock rises as Q2 earnings beat estimates

NEW YORK - Beazer Homes USA, Inc. (NYSE:BZH) saw its stock rise 5% after reporting second quarter earnings that surpassed analyst expectations, despite revenue falling short of estimates.

The homebuilder reported adjusted earnings per share of $0.42 for the quarter ended March 31, 2025, beating the analyst consensus of $0.29. However, revenue came in at $565.34 million, below the $625.21 million analysts had projected.

Beazer’s net income from continuing operations was $12.8 million, down from $39.2 million in the same quarter last year. The company closed 1,079 homes during the quarter, up 3.4% YoY, while the average selling price decreased slightly to $515,300.

"We made progress towards our Multi-Year Goals and surpassed our profitability expectations despite challenging macroeconomic conditions and declining consumer sentiment," said Allan P. Merrill, Beazer’s Chairman and CEO.

Net new orders declined 15.5% to 1,098 homes, with the sales pace falling to 2.3 orders per community per month from 3.1 a year ago. However, the company’s average community count increased 15.9% to 163.

Beazer also announced a new $100 million share repurchase authorization, which it expects to execute over multiple years. The company repurchased approximately 905,000 shares for $20.6 million during the quarter.

"While current market conditions are challenging, constrained by affordability and weak consumer sentiment, we remain optimistic about the need for a growing number of new homes in the years ahead," Merrill added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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