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

Beazer Homes USA, Inc. (NYSE:BZH)’s share price gapped down prior to trading on Friday following a dissappointing earnings announcement. 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). The firm had revenue of $363.49 million during the quarter, compared to analyst estimates of $423.23 million. Beazer Homes USA had a net margin of 0.44% and a return on equity of 2.10%. Beazer Homes USA’s revenue for the quarter was down 22.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.10 EPS.

Trending Headlines about 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

Analyst Ratings Changes

BZH has been the subject of a number of recent research reports. Weiss Ratings reissued a “hold (c)” rating on shares of Beazer Homes USA in a research report on Monday, December 29th. Zacks Research upgraded shares of Beazer Homes USA from a “strong sell” rating to a “hold” rating in a research note on Friday, January 16th. Finally, Wall Street Zen upgraded shares of Beazer Homes USA from a “sell” rating to a “hold” rating in a research report on Saturday, December 13th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Beazer Homes USA currently has an average rating of “Hold” and a consensus price target of $31.33.

Hedge Funds Weigh In On Beazer Homes USA

Hedge funds have recently bought and sold shares of the company. Royal Bank of Canada lifted its holdings in shares of Beazer Homes USA by 1.8% during the 1st quarter. Royal Bank of Canada now owns 73,915 shares of the construction company’s stock worth $1,507,000 after acquiring an additional 1,279 shares during the period. AQR Capital Management LLC raised its position in Beazer Homes USA by 35.5% during the first quarter. AQR Capital Management LLC now owns 198,855 shares of the construction company’s stock valued at $4,055,000 after purchasing an additional 52,062 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Beazer Homes USA by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,314 shares of the construction company’s stock worth $353,000 after purchasing an additional 734 shares during the last quarter. Belpointe Asset Management LLC lifted its stake in Beazer Homes USA by 20.6% during the second quarter. Belpointe Asset Management LLC now owns 12,448 shares of the construction company’s stock worth $278,000 after purchasing an additional 2,129 shares during the last quarter. Finally, CWM LLC boosted its holdings in shares of Beazer Homes USA by 69.2% in the 2nd quarter. CWM LLC now owns 6,771 shares of the construction company’s stock valued at $151,000 after purchasing an additional 2,769 shares in the last quarter. 85.65% of the stock is owned by institutional investors.

Beazer Homes USA Stock Performance

The company has a current ratio of 16.21, a quick ratio of 2.07 and a debt-to-equity ratio of 0.82. The company has a market cap of $636.68 million, a P/E ratio of 71.92, a price-to-earnings-growth ratio of 1.03 and a beta of 2.18. The company has a 50 day moving average price of $22.23 and a 200-day moving average price of $23.27.

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.