Beazer Homes USA (NYSE:BZH) Shares Gap Down on Disappointing Earnings

Beazer Homes USA, Inc. (NYSE:BZH) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $24.21, but opened at $20.61. Beazer Homes USA shares last traded at $20.46, with a volume of 192,795 shares.

The construction company reported ($1.13) EPS for the quarter, missing the consensus estimate of ($0.49) by ($0.64). Beazer Homes USA had a return on equity of 2.10% and a net margin of 0.44%.The company had revenue of $363.49 million during the quarter, compared to the consensus estimate of $423.23 million. During the same period last year, the business earned $0.10 EPS. The firm’s quarterly revenue was down 22.5% compared to the same quarter last year.

Key Stories Impacting Beazer Homes USA

Here are the key news stories impacting Beazer Homes USA this week:

• Positive Sentiment: Liquidity and balance-sheet metrics provide some cushion — BZH shows a high current ratio and a quick ratio above 2, which may help weather a weak housing cycle. (Background company filings)
• Neutral Sentiment: Management hosted an earnings call and provided slides/notes; investors will parse the call transcript for details on backlog, cancellations and how management plans to adjust community growth plans. Earnings Call Transcript
• Negative Sentiment: Big EPS and revenue miss — Beazer reported a Q1 loss materially worse than expected (about a $0.90–$1.13 loss vs. consensus near -$0.49) and revenue down ~22% year-over-year, signaling weaker demand. Why Beazer Homes Stock Just Crashed
• Negative Sentiment: Margin compression — gross margins dropped (reported around mid-teens), hurting profitability and implying cost or pricing pressure even as volumes fall. Beazer Homes: Q1 Miss Adds To Value Trap Fears
• Negative Sentiment: Operational and demand risks highlighted — analysts and SA commentary point to declining orders, rising cancellations and weaker housing demand that undermine the company’s aggressive community growth and buyback posture. Value Trap Fears
• Negative Sentiment: Market reaction and volume — the stock is trading down on heavy volume, reflecting investor sell-side and retail concern after the miss and the outlook/strategy questions. (Market trading data and press release) Press Release / Slide Deck

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Weiss Ratings cut shares of Beazer Homes USA from a “hold (c)” rating to a “sell (d)” rating in a research note on Friday. Zacks Research upgraded Beazer Homes USA from a “strong sell” rating to a “hold” rating in a research note on Friday, January 16th. Finally, Wall Street Zen cut Beazer Homes USA from a “hold” rating to a “strong sell” rating in a report on Saturday. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $31.33.

Hedge Funds Weigh In On Beazer Homes USA

Institutional investors have recently added to or reduced their stakes in the company. Total Clarity Wealth Management Inc. purchased a new stake in Beazer Homes USA during the second quarter valued at $234,000. Round Hill Asset Management lifted its holdings in shares of Beazer Homes USA by 109.6% in the 2nd quarter. Round Hill Asset Management now owns 135,203 shares of the construction company’s stock valued at $3,024,000 after acquiring an additional 70,690 shares during the last quarter. Fund 1 Investments LLC purchased a new position in Beazer Homes USA in the second quarter worth about $1,946,000. Register Financial Advisors LLC increased its stake in Beazer Homes USA by 54.7% during the third quarter. Register Financial Advisors LLC now owns 152,152 shares of the construction company’s stock worth $3,735,000 after acquiring an additional 53,771 shares during the last quarter. Finally, CSM Advisors LLC purchased a new stake in Beazer Homes USA during the second quarter valued at approximately $2,504,000. Hedge funds and other institutional investors own 85.65% of the company’s stock.

Beazer Homes USA Stock Performance

The firm has a market capitalization of $636.68 million, a PE ratio of 71.92, a P/E/G ratio of 1.03 and a beta of 2.18. The business has a 50-day simple moving average of $22.23 and a 200-day simple moving average of $23.27. The company has a debt-to-equity ratio of 0.82, a current ratio of 16.21 and a quick ratio of 2.07.

About Beazer Homes USA

Beazer Homes USA, Inc is a national homebuilder specializing in the design, construction and sale of single-family homes. The company serves a diverse range of buyers, offering product lines that span from entry-level homes to move-up and active adult communities. In addition to its core homebuilding operations, Beazer provides mortgage financing, title and closing services through its subsidiaries, aiming to simplify the home-buying process and manage risk across the transaction.

Operating in key growth markets across the United States, Beazer Homes maintains a presence in more than a dozen metropolitan areas, including select markets in the Southeast, Southwest and West.