Beazer Homes USA
The 10-second takeaway
For the quarter ended June 30 (Q3), Beazer Homes USA missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP loss per share dropped. GAAP loss per share dropped.
Margins increased across the board.
Beazer Homes USA notched revenue of $314.4 million. The eight analysts polled by S&P Capital IQ predicted revenue of $334.4 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $254.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$0.22. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.40 per share. Non-GAAP EPS were -$0.22 for Q3 against -$1.63 per share for the prior-year quarter. GAAP EPS were -$0.23 for Q3 against -$2.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 17.2%, 660 basis points better than the prior-year quarter. Operating margin was 2.7%, 870 basis points better than the prior-year quarter. Net margin was -1.8%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $417.5 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is -$1.74.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 417 members out of 1,057 rating the stock outperform, and 640 members rating it underperform. Among 263 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give Beazer Homes USA a green thumbs-up, and 164 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 $21.44.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.