Beazer Homes USA Reports Fiscal Fourth Quarter and Full Year 2024 Results
Intellectia.AI2024-11-14
Beazer Homes USA Reports Fiscal Fourth Quarter and Full Year 2024 Results
Beazer Homes USA, Inc. (NYSE: BZH) reported its financial results for the fourth quarter and fiscal year ended September 30, 2024, demonstrating resilience in a challenging market.
Key Financial Metrics
| Metric | Current Quarter | YoY Comparison | Consensus Estimates |
|---|---|---|---|
| Total Revenue | $783.8M | +22.1% | $774.56M |
| Earnings Per Share (EPS) | $1.69 | -6.1% | $1.35 |
| Net Income | $52.1M | -6.6% |
Interpretation: Beazer Homes exceeded revenue expectations and outperformed on earnings per share compared to consensus estimates for the quarter. Despite higher revenue and increased community activity, year-over-year declines in net income and EPS reflect the challenges faced in the market, including tightened margins due to increased sales of speculative homes.
Segment Revenue Breakdown
| Segment | Revenue | YoY Comparison | ASP Change |
|---|---|---|---|
| Homebuilding Revenue | $2.29B (annual), $783.8M (quarterly) | +4.3% (annual), +22.1% (quarterly) | -0.5% (annual) / +0.7% (quarterly) |
Interpretation: The homebuilding segment showed robust growth, driven by increased home closings and a rise in community count. However, a modest decline in ASP annually highlights the competitive price adjustments necessary to maintain sales flow.
Operational Highlights
- Net new orders increased by 9.2% annually and 2.6% quarterly.
- Active communities expanded to 162, a 20.9% increase year-over-year.
- Controlled lots grew by 9.0% to 28,538.
- The backlog value as of the fiscal year-end was $797.2M, reflecting a 10.1% decrease due to fewer units but offset by an ASP increase.
Key Developments
- Refinanced $197.9M of Senior Unsecured Notes due 2025 with $250M of Notes due 2031.
- Maintained strong liquidity with $503.9M available, including cash and credit capacity.
- Recognized with several ESG awards, including the Housing Innovation Grand Award for Most Certified Homes.
Executive Commentary
CEO Allan P. Merrill highlighted the company's strategic community expansions and adapted sales approaches amidst high mortgage rates. Merrill expressed confidence in achieving long-term goals, citing strong market dynamics and an effective operating team.
Forward Guidance
The company anticipates continued community growth leading to increased revenue and expects to maintain a double-digit return on capital employed for fiscal 2025.
Stock Movement
Following the earnings release, Beazer Homes' stock saw a slight decline of 0.28%, reflecting cautious investor sentiment amid the broader challenging economic environment.
Overall, Beazer Homes' solid performance in the face of market headwinds underscores the company's strategic resilience and commitment to its long-term goals.
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