Beazer Homes USA
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Beazer Homes USA missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins improved across the board.
Beazer Homes USA tallied revenue of $188.5 million. The six analysts polled by S&P Capital IQ expected revenue of $207.9 million. Sales were 71% higher than the prior-year quarter's $110.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.05. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.39 per share on the same basis. GAAP EPS were $0.01 for Q1 against -$0.66 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 11.8%, 90 basis points better than the prior-year quarter. Operating margin was -8.9%, 1,620 basis points better than the prior-year quarter. Net margin was 0.4%, 4,470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $184.5 million. On the bottom line, the average EPS estimate is -$0.46.
Next year's average estimate for revenue is $958.6 million. The average EPS estimate is -$1.55.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 405 members rating the stock outperform, and 642 members rating it underperform. Among CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Beazer Homes USA a green thumbs-up, and 242 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Beazer Homes USA is hold, with an average price target of $3.55.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.