Beazer Homes USA Third Quarter Earnings Sneak Peek

Beazer Homes USA, Inc. (NYSE:BZH) will unveil its latest earnings on Friday, August 3, 2012. Beazer Homes USA designs, sells, and builds single-family and multi-family homes in the United States.

Beazer Homes USA, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 33 cents per share, a narrower loss from the year-earlier quarter net loss of 53 cents. During the past three months, the average estimate has moved up from a loss of 36 cents. Between one and three months ago, the average estimate moved up. It has risen from a loss of 35 cents during the last month.

Past Earnings Performance: Last quarter, the company fell short of estimates by 2 cents, coming in at a loss of 43 cents a share versus the estimate of net loss of 41 cents a share. It was the fourth straight quarter of missing estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 52.7% in revenue from the year-earlier quarter to $263.9 million.

Stock Price Performance: Between June 29, 2012 and July 30, 2012, the stock price dropped 88 cents (-27.1%), from $3.25 to $2.37. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 11, 2012, when shares rose for 10 straight days, increasing 39.3% (+90 cents) over that span. It saw one of its worst periods between July 29, 2011 and August 11, 2011 when shares fell for 10 straight days, dropping 45.9% (-$1.33) over that span.

A Look Back: In the second quarter, the company’s loss narrowed to a loss of $39.9 million (51 cents a share) from a loss of $53.8 million (73 cents) a year earlier, but missed analyst expectations. Revenue rose 50.3% to $191.6 million from $127.5 million.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 32.4% in the fourth quarter of the last fiscal year and 70.9% in the first quarter before climbing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 8.83 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 9.97 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 12.3% to $199.7 million while assets decreased 0.5% to $1.76 billion.

Analyst Ratings: With three analysts rating the stock a sell, two rating it as a buy and none rating it as a hold, there are indications of a bearish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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