Beazer Homes USA-Beazer Homes Q4 Earnings & Revenues Beat Estimates, Stock Rises

Core Insights - Beazer Homes USA, Inc. reported better-than-expected fourth-quarter fiscal 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate [1][4] - The company's shares gained over 7% in after-hours trading following the earnings release [2] Financial Performance - Beazer Homes reported adjusted earnings of $1.69 per share, beating the Zacks Consensus Estimate of$ 1.36 by 24.3%, although this reflects a decline of 6.1% from the previous year [4] - Total revenues reached $806.2 million, marking a 24.9% year-over-year increase and surpassing the consensus mark of$ 774 million by 4.1% [4] Homebuilding Metrics - Homebuilding revenues were $783.8 million, up 22.1% year over year, with total home closings increasing by 21.3% to 1,496 homes [5] - The average selling price (ASP) for homes closed rose by 0.7% year over year to$ 523,900 [5] - Net new orders increased by 2.6% year over year to 1,029, while cancellation rates rose to 21.9% from 16.5% a year ago [5] Backlog and Margins - As of September 30, 2024, the total dollar value of homes in backlog was $797.2 million, down from$ 886.4 million a year ago, with an ASP of $537,900, reflecting a 3.8% year-over-year increase [6] - Homebuilding gross margin decreased by 390 basis points to 20.4% in the fiscal fourth quarter [6] Operational Efficiency - Selling, general and administrative expenses as a percentage of total revenues decreased by 140 basis points year over year to 9.7% [7] - Adjusted EBITDA was$ 93.1 million, up 3.5% from the previous year due to higher homebuilding revenues, partially offset by lower gross margin [7] Balance Sheet Overview - At the end of the fiscal fourth quarter, the company had $203.9 million in cash and cash equivalents, down from$ 345.6 million at the end of fiscal 2023 [8] - The total debt-to-capitalization ratio improved slightly to 45.4% from 47.0% last year, while net debt to net capitalization rose to 40.0% from 36.4% [9] Future Outlook - For fiscal 2025, Beazer Homes expects a 10% top-line growth, with adjusted gross margin forecasted between 19.5% and 20.5% [10] - The company aims for all homes to meet Zero Energy Ready standards by the end of fiscal 2025, anticipating EBITDA growth and a double-digit return on capital employed [11]