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Beazer Homes (BZH) Earnings & Revenues Beat Estimates in Q4

Zacks

Beazer Homes USA Inc. BZH reported adjusted fourth-quarter fiscal 2017 (ending Sep 30, 2017) earnings of 99 cents per share, beating the Zacks Consensus Estimate of 53 cents by 86.8%. It also increased substantially from the year-ago figure of 33 cents.

Revenues, Orders, Backlog, ASP

Total revenues, that include homebuilding as well as land sales and other, came in at $673 million in the quarter, surpassing the Zacks Consensus Estimate of $648 million by 3.9%. The reported figure was up 6.5% on a year-over-year basis.

Total homebuilding revenues were $665.5 million, up 7.3% year over year. Of this, West region reported a rise of 1.6%, East region saw a 21.1% hike and Southeast region posted a 2.7% increase, all on a year-over-year basis. Land sales and other contributed $7.5 million to total revenues, down 38.2% year over year.

Closing: Total closings during the quarter were 1,904 units, up 2.6% year over year.

While closings rose in the East region, the same declined in the West and Southeast regions during the quarter.

New orders, net of cancellations: Total new orders were 1,315 units in the fourth quarter, down from 1,346 units in the year-ago quarter, as several markets were impacted by hurricanes Harvey and Irma. The West and Southeast regions registered higher net orders, while East continued to lag.

Total backlog: Total backlog as of Sep 30, 2017, came in at 1,855 units, down 3.2% year over year. Backlog was $665.8 million in value, up 2% from $652.7 million in fiscal 2016.

Average selling price or ASP from closings: ASP was $349.5 in the quarter, up 4.6% year over year.

New home deliveries were 1,904, up 2.6% year over year.

Operating Highlights

Beazer Homes’ Homebuilding gross profit was $113 million, up from $100.7 million a year ago. Homebuilding gross margin (excluding I&A and interest amortized to cost of sales) was 22%, up 120 basis points (bps) year over year.

Selling, general and administrative expenses, as a percentage of total revenues, were 10.5% in the quarter, down 10 bps year over year.

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

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


2017 Results

Beazer Homes’ fiscal 2017 earnings of 99 cents per share increased substantially from the year-ago figure of 15 cents. Total revenues came in at $1.9 billion in the quarter, up 5.6% on a year-over-year basis.

In fiscal 2017, total closings were 5,525 units, up from 5,419 units in fiscal 2016. All three regions registered higher closing than the prior year. Total net orders increased to 5,464 units from 5,297 in fiscal 2016.

Zacks Rank

Beazer Homes carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Now, looking at some of the other construction companies’ fourth-quarter releases, Masco Corporation’s MAS adjusted earnings of 50 cents per share in third-quarter 2017 missed the Zacks Consensus Estimate of 53 cents by 5.7%. PulteGroup Inc.’s PHM fourth-quarter earnings beat the Zacks Consensus Estimate by 1.7%. Meanwhile, D.R. Horton Inc.’s DHI earnings met with the Zacks Consensus Estimate, while revenues surpassed the mark on a solid housing market scenario.

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