Beazer Homes Q4 Earnings & Revenues Beat Estimates, Stock Rises

In This Article:

Beazer Homes USA, Inc. BZH reported better-than-expected fourth-quarter fiscal 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate, respectively.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

This leading homebuilder’s shares gained more than 7% in the after-hours trading session yesterday, after the earnings release.

Beazer Homes' fiscal 2024 performance demonstrated resilience in a challenging market driven by strategic investments and innovation. Moving into 2025, the company is prepared for growth through new communities, a stronger commitment to Zero Energy Ready homes, and adaptability in sales strategies amid high-rate environments.

Over $750 million was invested in land and development, resulting in a 20% increase in active communities (162 communities) year over year, positioning the company for continued growth.

Beazer Homes USA, Inc. Price, Consensus and EPS Surprise

Beazer Homes USA, Inc. Price, Consensus and EPS Surprise
Beazer Homes USA, Inc. Price, Consensus and EPS Surprise

Beazer Homes USA, Inc. price-consensus-eps-surprise-chart | Beazer Homes USA, Inc. Quote

Beazer Homes’ Earnings & Revenue Discussion

Beazer Homes reported quarterly adjusted earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.36 by 24.3% but declining 6.1% from the year-ago period’s levels.
 
Total revenues came in at $806.2 million, up 24.9% year over year. The reported figure surpassed the consensus mark of $774 million by 4.1%.

BZH’s Home Closings, Orders, Margins

Homebuilding revenues of $783.8 million improved 22.1% from the prior-year quarter’s levels. Total home closings were up 21.3% year over year to 1,496 homes. The average selling price (ASP) for homes closed was up 0.7% year over year to $523,900.

Net new orders increased 2.6% from the prior-year levels to 1,029. Cancelation rates were up 21.9% from 16.5% a year ago. Sales pace decreased to 2.2 orders per community per month from 2.6 in the previous-year quarter.

As of Sept. 30, 2024, the total dollar value of homes in backlog was $797.2 million, accounting for 1,482 homes. This compares to $886.4 million and 1,711 homes at the same time last year. The ASP of homes in the backlog increased 3.8% year over year, reaching $537,900.

Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was down 390 basis points (bps) to 20.4% in the fiscal fourth quarter.

Selling, general and administrative expenses, as a percentage of total revenues, decreased 140 bps year over year to 9.7%. The adjusted EBITDA was $93.1 million, up 3.5% from the year-ago levels due to higher homebuilding revenues, partially offset by lower gross margin.

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