Beazer Homes Earnings: Here’s Why Shares are Up Now

Beazer Homes USA Inc. (NYSE:BZH) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.79%.

Beazer Homes USA Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.22 in the quarter versus EPS of $-2.00 in the year-earlier quarter.

Revenue: Rose 23.51% to $314.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Beazer Homes USA Inc. reported adjusted EPS loss of $0.22 per share. By that measure, the company beat the mean analyst estimate of $-0.37. It missed the average revenue estimate of $332.21 million.

Quoting Management: “We were pleased with the continued improvement in both our key operational metrics and our financial results for the third quarter,” said Allan Merrill, CEO of Beazer Homes. “With improved homebuilding gross margins, higher average sales prices and strict control over operating expenses, we are poised to report positive net income in our fiscal fourth quarter and expect to report our first full year of profitability in nearly a decade for fiscal 2014.”

Key Stats (on next page)…

Revenue increased 9.2% from $287.9 million in the previous quarter. EPS increased to $-0.22 in the quarter versus EPS of $-0.80 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.05 to a profit $0.11. For the current year, the average estimate has moved up from a loss of $2.06 to a loss of $1.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)