Beazer Homes Q1 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13h ago
0mins
Source: seekingalpha
- Earnings Miss: Beazer Homes reported a Q1 non-GAAP EPS of -$0.90, missing expectations by $0.41, indicating significant challenges in profitability amid a tough market environment.
- Revenue Decline: The company generated $363.49 million in revenue for the first quarter, a 22.5% year-over-year decrease that fell short of the $423.23 million forecast, reflecting weak sales and diminished market demand.
- Backlog Value Drop: As of December 31, 2025, the dollar value of homes in backlog was $573.3 million, down 29.5% from $816.0 million a year earlier, highlighting pressure on orders and sales.
- New Orders Down: Net new orders fell to 763 in Q1, an 18.1% decline from 932 in the prior year, with a sales pace decrease to 1.5 orders per community per month, indicating intensified market competition and weakened consumer confidence.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BZH?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BZH
Wall Street analysts forecast BZH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BZH is 23.00 USD with a low forecast of 23.00 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 23.580
Low
23.00
Averages
23.00
High
23.00
Current: 23.580
Low
23.00
Averages
23.00
High
23.00
About BZH
Beazer Homes USA, Inc. is a geographically diversified homebuilder with active operations in approximately 13 states. It operates in three segments: West, East, and Southeast. The West segment includes Arizona, California, Nevada, and Texas. The East segment includes Delaware, Indiana, Maryland, New Jersey(a), Tennessee, and Virginia. The Southeast segment includes Florida, Georgia, North Carolina, and South Carolina. Its portfolio includes Montana Vista, Retreat at Rancho Mirage, Acacia Foothills at Estrella, Highpointe at Northpointe, Marbella at Windrose, Tirreno at IronWing, Cassia at Vistancia, Bethany Grove, Sanctuary, and Willows at Bella Vista Farms. It builds its homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. The Company with its Choice Plans, consumers can personalize primary living areas, giving you a choice of how you want to live in the home, at no additional cost.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Beazer Homes to Announce Q1 Earnings on January 29
- Earnings Announcement Schedule: Beazer Homes (BZH) is set to release its Q1 2023 earnings report on January 29 after market close, with consensus EPS estimate at -$0.49 and revenue estimate at $423.23 million, reflecting a 9.7% year-over-year decline.
- Historical Performance Review: Over the past year, BZH has exceeded EPS estimates 100% of the time, while only 25% of revenue estimates were surpassed, indicating stability in profitability but volatility in revenue.
- Expectation Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with two downward adjustments, and similarly, revenue estimates saw no upward revisions but three downward, suggesting market caution regarding the company's future performance.
- Market Opportunity Analysis: Despite facing revenue decline challenges, Beazer Homes aims to target over 200 communities by 2027, indicating the company's commitment to margin improvement efforts and long-term growth potential.
Continue Reading
Beazer Homes Q1 2026 Earnings Call Insights
- Sales Performance Review: Beazer Homes sold 763 homes in Q1 2026, achieving a pace of 1.5 sales per community per month, and while this was below expectations, management remains optimistic about future sales growth.
- Financial Overview: The company reported homebuilding revenue of $359.7 million in Q1, with an average selling price of $514,000; gross margin fell to 14% due to a $6.4 million litigation-related charge, but excluding this, gross margin would have been 15.8%.
- Share Repurchase Plan: Beazer executed $15 million in share buybacks in Q1, with $72 million remaining on its authorization, and management believes that selling land above book value to repurchase shares below book value will be highly accretive for shareholders.
- Future Outlook: Management expects to sell approximately 1,100 homes and close about 800 in Q2, with anticipated adjusted gross margins remaining flat; despite market uncertainties, they are committed to achieving full-year EBITDA growth.
Continue Reading