Beazer Homes Earnings: Here’s Why the Stock is Rising Now

Beazer Homes USA Inc. (NYSE:BZH) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.33%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Beazer Homes USA Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.78 in the quarter versus EPS of $-2.55 in the year-earlier quarter.

Revenue: Rose 50.23% to $287.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Beazer Homes USA Inc. reported adjusted EPS loss of $0.78 per share. By that measure, the company missed the mean analyst estimate of $-0.75. It beat the average revenue estimate of $252.24 million.

Quoting Management: “I’m pleased with our solid operational and financial performance this quarter,” said Allan Merrill, CEO of Beazer Homes. “Improvements in closings, average sales price and gross margins enabled us to generate $15 million in adjusted EBITDA, the highest amount for our fiscal second quarter since 2007. With a substantially higher backlog, improving margins and tight control of fixed costs, we expect to report positive net income for our fiscal fourth quarter, which should allow us to be profitable for the second half of fiscal 2013.”

Key Stats (on next page)…

Revenue increased 16.61% from $246.9 million in the previous quarter. EPS increased to $-0.78 in the quarter versus EPS of $-0.84 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 loss of $0.76 to a loss $0.65. For the current year, the average estimate has moved up from a loss of $3.28 to a loss of $2.77 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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