Beazer Homes USA(US:BZH) ZACKS·2025-03-06 12:10Core Viewpoint - Beazer Homes is experiencing significant challenges in the housing market in 2025, leading to a projected decline in earnings and a bearish outlook from analysts [1][7]. Financial Performance - Beazer Homes reported fiscal first quarter 2025 earnings of $0.10, missing the Zacks Consensus estimate by $0.21, which represents a 67.7% earnings miss [5]. - Revenue increased by 20.9% year-over-year to $460.4 million, driven by a 22.1% rise in home closings to 907 homes, despite a 1% decrease in average sales price to $507,600 [6]. - The adjusted gross margin fell to 18.2% from 22.9% the previous year, attributed to increased price concessions, closing cost incentives, and a higher share of lower-margin spec home closings [7]. Share Repurchase and Market Response - Beazer Homes announced an acceleration of its share repurchase program, with approximately $24.8 million remaining as of February 6, 2025, and has repurchased about $4.1 million of its shares at a weighted average price of $21.86 [2][3]. - The company's shares have declined by 27.6% over the last six months, reflecting market fears regarding the housing sector and tariff impacts [9]. Analyst Sentiment and Valuation - Analysts have become increasingly bearish on Beazer Homes, with the Zacks Consensus Estimate for the full year dropping from $4.44 to $3.49, a decline of 23% [8]. - Beazer Homes is currently considered undervalued, with a forward price-to-earnings (P/E) ratio of 6.2 and a PEG ratio of 0.3, indicating potential value and growth [11].