Financial Performance - Net income for fiscal 2024 was $140.2 million, or $4.53 per diluted share, down from $158.7 million, or $5.16 per diluted share in fiscal 2023[3]. - Adjusted EBITDA for fiscal 2024 was $243.4 million, a decrease of 10.5% year-over-year[3]. - Income from continuing operations decreased to $52.1 million, down 6.6% from $55.8 million[18]. - Basic income per share from continuing operations was $1.72, a decrease of 6.0% from $1.83[18]. - The company reported net income of $52,066,000 for the three months ended September 30, 2024, down from $55,756,000 in the same period of 2023, a decrease of 5%[24]. - Net income for the fiscal year ended September 30, 2024, was $140,175, down from $158,611 in 2023[32]. - Adjusted EBITDA for the fiscal year ended September 30, 2024, was $243,418, compared to $272,031 in 2023[32]. Revenue and Sales - Homebuilding revenue reached $2.29 billion, up 4.3% due to a 4.8% increase in home closings to 4,450, despite a 0.5% decrease in average selling price (ASP) to $515.3 thousand[3]. - Homebuilding revenue grew to $783.8 million, a 22.1% increase from $641.8 million[18]. - Total revenue for the three months ended September 30, 2024, was $806,157,000, a 25% increase from $645,405,000 in the same period of 2023[24]. Orders and Backlog - Net new orders for fiscal 2024 were 4,221, up 9.2% from 3,866 in the previous year, with a cancellation rate of 21.9%[5][17]. - New home orders increased to 1,029 for the three months ended September 30, 2023, up 2.6% from 1,003[18]. - Cancellation rates rose to 21.9%, an increase of 540 basis points from 16.5%[18]. - Backlog units declined to 1,482, a decrease of 13.4% from 1,711[18]. - Dollar value of backlog decreased to $797.2 million, down 10.1% from $886.4 million[18]. - New orders, net of cancellations, totaled 1,029 for the three months ended September 30, 2024, compared to 1,003 in the same period of 2023, a 3% increase[27]. - The backlog units at the end of the period were 1,482, down from 1,711 in the previous year, reflecting a 13% decrease[28]. - The aggregate dollar value of the backlog was $797.2 million as of September 30, 2024, compared to $886.4 million a year earlier, a decrease of 10%[28]. Community and Closings - Active community count increased by 20.9% year-over-year to 162, contributing to a 30% growth in October sales compared to the prior year[3][4]. - Total home closings reached 1,496, representing a 21.3% increase from 1,233[18]. - Average active community count increased to 153, an 18.0% rise from 130[18]. Financial Position and Debt - Total debt to total capitalization ratio improved to 45.4% from 47.0% a year ago, while net debt to net capitalization ratio increased to 40.0% from 36.4%[12][17]. - Unrestricted cash at quarter end was $203.9 million, with total liquidity of $503.9 million, down from $610.6 million a year ago[11]. - The company aims to reduce its net debt to net capitalization ratio below 30% by the end of fiscal year 2026[12]. - The total debt as of September 30, 2024, was $1,025,349,000, compared to $978,028,000 in the previous year, indicating a 5% increase[25]. - Total debt increased to $1,025,349 for the fiscal year ended September 30, 2024, from $978,028 in 2023[34]. - The total debt to total capitalization ratio improved to 45.4% in 2024 from 47.0% in 2023[34]. - Net debt to net capitalization ratio increased to 40.0% in 2024 from 36.4% in 2023[34]. Land Acquisition and Development - Land acquisition and development spending was $776.5 million, an increase of 35.5% from $573.1 million[3][17]. - Land acquisition and development spending was $179.0 million, a decrease of 16.2% from $213.7 million[18]. Gross Profit and Margins - Homebuilding gross margin for the fourth quarter was 17.2%, down 400 basis points year-over-year, while excluding impairments, it was 20.4%, down 390 basis points[4][8]. - Homebuilding gross profit for the three months ended September 30, 2024, was $134,911, with a margin of 17.2%, compared to $135,925 and 21.2% for the same period in 2023[31]. - Homebuilding gross profit excluding inventory impairments and interest amortized to cost of sales was $159,837, representing a margin of 20.4% for the three months ended September 30, 2024[31]. Inventory and Expenses - Capitalized interest in inventory at the end of the period was $124,182,000, up from $112,580,000 in the previous year, representing a 10% increase[26]. - Inventory impairments and abandonments amounted to $1,796 for the three months ended September 30, 2024, compared to $25 in the same period of 2023[32]. - Interest amortized to home construction and land sales expenses was $23,705 for the three months ended September 30, 2024, compared to $19,919 in 2023[32]. - The company reported a decrease in expense from income taxes to $18,910 for the fiscal year ended September 30, 2024, down from $23,936 in 2023[32].

Beazer Homes USA, Inc. (BZH) is scheduled to report fourth-quarter fiscal 2024 (ended Sept. 30, 2024) results on Nov. 13, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, Beazer Homes’ earnings per share (EPS) beat the Zacks Consensus Estimate by 4.8% but revenues missed the same by 0.6%. On a year-over-year basis, EPS of 88 cents declined from the year-ago level of $1.42. Revenues of $595.7 million increased 4% year over year. Hom ...

Analysts on Wall Street project that Beazer Homes (BZH) will announce quarterly earnings of $1.36 per share in its forthcoming report, representing a decline of 24.4% year over year. Revenues are projected to reach $774.29 million, increasing 20% from the same quarter last year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this perio ...

Hispanolistic/E+ via Getty Images Beazer Homes USA, Inc. (NYSE:BZH) reported the company's fiscal Q3 results on the 1st of August in post-market hours, sending the stock down -13% the following day. While the Q3 financials came in as expected, the fiscal Q4 expectations were pushed down considerably from previously incredibly ambitious levels. In my previous article on the stock, "Beazer Homes Has Significant Mid-Term Targets As Revenues Gradually Improve," I remained with a Buy rating for Beazer Homes, cal ...

Core Insights - Beazer Homes USA reported revenue of $595.68 million for the June quarter, a 4% increase year-over-year, but EPS decreased to $0.88 from $1.24 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $599.12 million, resulting in a surprise of -0.57%, while EPS exceeded the consensus estimate of $0.84 by +4.76% [1] Financial Projections - Analysts have significantly reduced profit projections for Beazer Homes, with the Zacks EPS Consensus for the current fiscal year dropping from $4.64 to $4.37, indicating a 15% annual decline [2] - For the next fiscal year, EPS estimates were cut over 10% from $5.28 to $4.72 [2] Business Demand Metrics - New home orders, net of cancellations, were reported at 1,070, below the average estimate of 1,399 by two analysts [3] - Units in Backlog for Continuing Operations were reported at 1,949, compared to the average estimate of 2,258 by two analysts [3] - Analysts' pessimism may be influenced by rising recession concerns following the Sahm rule triggered by increasing unemployment data [3] Stock Performance - Beazer Homes shares experienced a strong rally of 27% in July, benefiting from small-cap stock favorability [4] - The stock is currently bouncing off support at $26, a level that has historical significance from April and November [4] - Caution is advised for investors until profit estimates stabilize [4]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: Fox Factory Holdings (FOXF) is a designer, manufacturer and marketer of suspension products used primarily on mountain bikes, side-by-side vehicles, on-road vehicles, off-road vehicles, all-terrain vehicles, snowmobiles, specialty vehicles and applications and motorcycles. The Zacks Consensus Estimate for its current year earnings has been revised almost 28.3% downward over the last 60 days. Crescent Energy Company (CRGY) is an indep ...

For the quarter ended June 2024, Beazer Homes (BZH) reported revenue of $595.68 million, up 4% over the same period last year. EPS came in at $0.88, compared to $1.24 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $599.12 million, representing a surprise of -0.57%. The company delivered an EPS surprise of +4.76%, with the consensus EPS estimate being $0.84. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

Financial Data and Key Metrics Changes - For Q3 2024, the company generated 1,070 new orders, reflecting a sales pace of 2.4 sales per community per month, which was below expectations [12] - Homebuilding revenue reached $589.6 million, with an average sales price of approximately $505,000 [12] - Adjusted EBITDA was $53.5 million, and diluted earnings per share were $0.88, with book value growing to over $38 per share [4][12] Business Line Data and Key Metrics Changes - The company closed 1,167 homes during the quarter, with adjusted gross margin at 20.3% [12] - The total lot pipeline increased to over 28,000 lots, a 25% growth from the previous year, providing visibility into community growth [5] Market Data and Key Metrics Changes - The sales environment was challenging, particularly in Houston and San Antonio, which saw weak sales due to affordability issues and market-specific factors [7][8] - Excluding the weak markets, the sales pace would have been approximately 2.8 sales per community per month, aligning more closely with seasonal expectations [7] Company Strategy and Development Direction - The company remains committed to its three multiyear goals: expanding community count, deleveraging the balance sheet, and delivering superior homes [9] - The company expects to end FY 2024 with over 155 active communities, representing a 15% annual growth, and aims for more than 200 communities by FY 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for new home sales, citing a decade of underbuilding and ongoing employment and wage growth as supportive factors [9] - The company anticipates revenue growth of about 20% in FY 2025, despite a lower backlog entering the fiscal year [15][17] Other Important Information - The company spent approximately $200 million on land during the quarter, with total liquidity at $328 million [19] - The company repurchased over 450,000 shares, representing about 1.5% of the company, at an average price just above $28 [12][20] Q&A Session Summary Question: Discussion on margin pressures and incentives - Management acknowledged temporary margin pressures due to decisions made regarding inventory and indicated a cautious approach to incentives in the current market [22][23] Question: State of other geographic markets - Management reported strength in markets outside Texas, including the Mid-Atlantic and Southern California, while noting a significant shift in demand in the sub-$300,000 price point in Texas [30] Question: Fourth quarter ASP guidance - The increase in average sales price guidance for Q4 was attributed to the introduction of Zero Energy Ready homes [31] Question: Share buyback strategy - The share buyback was described as part of a consistent capital allocation model, balancing returns and risks among various options [38]

Core Insights - Beazer Homes (BZH) reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, but down from $1.24 per share a year ago, indicating an earnings surprise of 4.76% [1] - The company posted revenues of $595.68 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.57%, compared to $572.54 million in the same quarter last year [2] - Beazer has surpassed consensus EPS estimates three times over the last four quarters, but has only topped revenue estimates once in the same period [2] Future Outlook - The immediate price movement of Beazer's stock will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $1.83 on revenues of $910.94 million, and for the current fiscal year, it is $4.64 on revenues of $2.44 billion [7] - The estimate revisions trend for Beazer is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Building Products - Home Builders industry, to which Beazer belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Community Growth and Land Position - The company's average active community count increased by 17.2% to 146 in Q3 2024, compared to 124 in the prior year quarter, as part of its goal to reach over 200 active communities by fiscal 2026[97] - The company's land position grew by 24.9% to 28,365 controlled lots as of June 30, 2024, with 55.5% of active lots under option agreements[99] - The company controlled 28,365 lots as of June 30, 2024, with 55.5% (15,434 lots) controlled through option agreements, up from 52.2% (11,510 lots) as of June 30, 2023[172] - The total remaining purchase price, net of cash deposits, committed under all options was $1.20 billion as of June 30, 2024[173] Sales and Orders Performance - Sales per community per month decreased to 2.4 in Q3 2024 from 3.2 in the prior year quarter, with net new orders down 10.8% to 1,070[98] - Net new orders for the quarter ended June 30, 2024, decreased to 1,070, down 10.8% from 1,200 in the same period in 2023[115] - The West segment saw a 1.4% increase in net new orders to 715 for the quarter ended June 30, 2024, compared to 705 in 2023[117] - The Southeast segment experienced a 57.0% decrease in net new orders to 105 for the quarter ended June 30, 2024, down from 244 in 2023[118] Revenue and Profitability - Revenue for Q3 2024 was $595.7 million, up 4.0% from $572.5 million in the prior year quarter, while gross profit decreased to $103.3 million from $116.7 million[106] - Operating income for Q3 2024 was $28.5 million, down 40.5% from $47.9 million in the prior year quarter, with operating income as a percentage of total revenue at 4.8%[106] - Net income (GAAP) for the three months ended June 30, 2024, was $27.2 million, down from $43.8 million in the same period in 2023, a decrease of $16.6 million[110] - Adjusted EBITDA (Non-GAAP) for the three months ended June 30, 2024, was $53.5 million, compared to $72.8 million in 2023, a decrease of $19.3 million[110] - Total homebuilding revenue decreased by 3.0% to $1.51 billion for the nine months ended June 30, 2024, with a 2.0% decrease in closings to 2,954 units and a 1.1% decrease in ASP to $510.9 thousand[123] - Total homebuilding gross profit excluding impairments and abandonments and interest amortized to cost of sales (Non-GAAP) was $119.5 million with a gross margin of 20.3% for the three months ended June 30, 2024[132] - Total homebuilding gross profit excluding impairments and abandonments and interest amortized to cost of sales (Non-GAAP) was $323.4 million with a gross margin of 21.4% for the nine months ended June 30, 2024[134] - Homebuilding gross profit decreased by $13.5 million to $102.0 million for Q2 2024, with gross margin dropping 290 basis points to 17.3%[136] - Total homebuilding gross profit decreased by $23.5 million to $278.7 million for the nine months ended June 30, 2024, with gross margin dropping 90 basis points to 18.5%[140] - Operating income decreased by $19.4 million to $28.5 million for the three months ended June 30, 2024, compared to $47.9 million in the same period in 2023[149] - Operating income decreased by $30.4 million to $84.8 million for the nine months ended June 30, 2024, compared to $115.2 million in the same period in 2023[150] Segment Performance - West Segment homebuilding revenue increased by 1.6% to $945.2 million for the nine months ended June 30, 2024, driven by a 4.2% increase in closings to 1,849 units, partially offset by a 2.4% decrease in ASP to $511.2 thousand[123][126] - East Segment homebuilding revenue decreased by 10.1% to $304.6 million for the nine months ended June 30, 2024, due to an 8.2% decrease in closings to 591 units and a 2.0% decrease in ASP to $515.4 thousand[123][126] - Southeast Segment homebuilding revenue decreased by 9.8% to $259.4 million for the nine months ended June 30, 2024, primarily due to a 13.5% decrease in closings to 514 units, partially offset by a 4.2% increase in ASP to $504.7 thousand[123][127] - West Segment homebuilding revenue increased by 11.9% to $365.9 million for the three months ended June 30, 2024, driven by a 14.8% increase in closings to 728 units, partially offset by a 2.5% decrease in ASP to $502.6 thousand[124][128] - East Segment homebuilding revenue decreased by 8.7% to $121.2 million for the three months ended June 30, 2024, due to a 5.1% decrease in closings to 240 units and a 3.8% decrease in ASP to $505.2 thousand[124][128] - Southeast Segment homebuilding revenue decreased by 7.5% to $102.5 million for the three months ended June 30, 2024, primarily due to a 13.5% decrease in closings to 199 units, partially offset by a 6.9% increase in ASP to $515.1 thousand[125][128] - West segment homebuilding gross margin decreased to 20.6% in Q2 2024, down from 24.9% in the prior year quarter[137] - East segment homebuilding gross margin decreased to 16.3% in Q2 2024, down from 19.6% in the prior year quarter[137] - Southeast segment homebuilding gross margin decreased to 21.4% in Q2 2024, down from 23.5% in the prior year quarter[138] - West segment homebuilding gross margin decreased to 21.2% for the nine months ended June 30, 2024, down from 22.8% in the prior year period[141] - East segment homebuilding gross margin decreased to 17.8% for the nine months ended June 30, 2024, down from 20.3% in the prior year period[141] - Southeast segment homebuilding gross margin decreased to 22.1% for the nine months ended June 30, 2024, down from 22.4% in the prior year period[142] - West segment operating income decreased by $10.0 million for the three months ended June 30, 2024, compared to the same period in 2023[151] - East segment operating income decreased by $7.3 million for the three months ended June 30, 2024, compared to the same period in 2023[151] - Southeast segment operating income decreased by $4.2 million for the three months ended June 30, 2024, compared to the same period in 2023[151] Backlog and Pricing - Total backlog units as of June 30, 2024, were 1,949, a slight increase of 0.4% compared to 1,941 in 2023[121] - The aggregate dollar value of homes in backlog as of June 30, 2024, was $1.0465 billion, up 3.6% from $1.0098 billion in 2023[121] - The average selling price (ASP) in backlog increased by 3.2% to $536.9 thousand as of June 30, 2024, compared to $520.3 thousand in 2023[121] - Average Selling Price (ASP) for homes closed in Q3 2024 was $505.3 thousand, down 1.1% from $510.8 thousand in the prior year quarter[100] SG&A and Operating Expenses - SG&A as a percentage of total revenue increased to 11.9% in Q3 2024 from 11.5% in the prior year quarter, driven by higher commissions and sales and marketing costs[103] - SG&A as a percentage of total revenue increased by 40 basis points to 11.9% for the three months ended June 30, 2024, compared to 11.5% in the same period in 2023[149] - SG&A as a percentage of total revenue increased by 80 basis points to 12.4% for the nine months ended June 30, 2024, compared to 11.6% in the same period in 2023[150] - Corporate and unallocated net expenses decreased by $2.1 million for the three months ended June 30, 2024, compared to the same period in 2023[152] Energy Efficiency and Tax Strategy - The company is transitioning to Zero Energy Ready homes, with 93% of starts meeting this standard in Q3 2024, ahead of its 100% target by the end of 2025[95] - The Inflation Reduction Act increased energy efficiency tax credits to $5,000 per single family home meeting Zero Energy Ready qualifications, benefiting the company's tax strategy[107] Debt and Liquidity - Total debt to total capitalization ratio (GAAP) was 47.6% as of June 30, 2024, compared to 48.4% in 2023[113] - Net debt to net capitalization ratio (Non-GAAP) was 45.8% as of June 30, 2024, compared to 40.3% in 2023[113] - The company's liquidity position as of June 30, 2024, consisted of $73.2 million in cash and cash equivalents and $255.0 million of remaining capacity under the Unsecured Facility[163] - The company had variable rate debt outstanding totaling approximately $75.9 million as of June 30, 2024, with a one percent increase in interest rates resulting in an additional $1.0 million in interest expense over the next twelve months[182] - The estimated fair value of the company's fixed-rate debt as of June 30, 2024 was $957.9 million, compared to a carrying amount of $948.5 million[182] - A hypothetical one-percentage point decrease in the estimated discount rates would increase the estimated fair value of the fixed rate debt instruments from $957.9 million to $997.8 million as of June 30, 2024[182] Share Repurchase and Capital Allocation - The company repurchased 455 thousand shares of its common stock for $12.9 million at an average price per share of $28.41 during the three and nine months ended June 30, 2024[170] - As of June 30, 2024, the remaining availability of the share repurchase program was $28.9 million[170] Land Sales and Other Revenue - Land sales and other revenue increased by $4.0 million to $6.0 million for Q2 2024, with gross profit remaining flat at $1.3 million[147] - Land sales and other revenue increased by $10.1 million to $14.8 million for the nine months ended June 30, 2024, with gross profit increasing by $1.0 million to $4.2 million[147] Cash Flow and Operating Activities - Net cash used in operating activities was $323.0 million for the nine months ended June 30, 2024, compared to $95.8 million provided by operating activities in the same period in 2023[158] Letters of Credit and Surety Bonds - The company had outstanding letters of credit and surety bonds of $34.9 million and $265.9 million, respectively, as of June 30, 2024[175]