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A Technical Look as Beazer Beats on Earnings, Targets Profitability in Fiscal 2014

By  +Follow August 1, 2013 8:16AM
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Despite posting a net loss for the recent quarter, Beazer Homes USA Inc. (BZH) , a top ten U.S. homebuilder, believes that it is on a path to record its first profitable fiscal year in almost a decade next year as average home price sales are improving and margins are widening.

For the fiscal third quarter ended June 30, Beazer reported total revenue of $314.44 million, up from $254.56 million in the third quarter last year.  Net loss for the quarter contracted to $5.79 million, or 22 cents per share, from $39.89 million, or $1.92 per share, in the year prior quarter.

Wall Street was expecting a net loss of 37 cents per share on revenue of $332 million.

The Atlanta-based company blamed an expected decline in community count for an 11.2 percent year-over-year decline in third-quarter orders (from 1,555 to 1,381), but said it “expects a materially higher community count by the end of Fiscal 2014.”  For the first nine months of fiscal 2013, orders are up by 1.1 percent at 3,834 compared to the same period last year.

On the sunny side, adjusted EBITDA rose five-fold to $21.8 million for the quarter, up from $4.0 million in the third quarter of Fiscal 2012.

For the quarter, the average sales price from closing increased almost 12 percent, from $227,300 last year to $253,800.  Total home closings were up 11.3 percent to 1,234 from 1,109 last year.

Gross margin, not including impairments and abandonments, jumped from 10.5 percent last year to 17.1 percent in the latest quarter.  Gross profit improved to $54.12 million from $21.23 million.

Cancellation rates fell by 450 basis points to 20 percent.

Backlog at the end of the quarter was 2,358 units with a sales value of $646.1 million, down by 61 units from the end of Q3 last year, but up in value by $73.3 million.

Ultra-low interest rates, that in some markets make it cheaper to buy than rent, coupled with banks loosening their purse strings a bit, have helped the housing market make a strong recovery for just over a year now.  Last week, the Commerce Department said that new home sales climbed to a five-year high in June as sales of single-family units improved 8.3 percent to a 497,000 annualized rate.

Technically speaking, the BZH chart can have some particular appeal when viewed from the longer term.  First, a look at the 6-month chart…not particularly impressive, other than sitting not far off a support level at $16.50.

 

 

However, zooming out to a 30-month chart shows the reversal that the stock price has made since falling from over $30 per share early in 2011 to a low of $6.73 in October 2011 (prices adjusted for a 1-for-5 reverse split that month).  From this perspective, Beazer may be sitting in an attractive position.  Closing at $17.19 on Wednesday, the upside to static resistance at $20 is greater than 16 percent.  To continue the upward path, especially if the company can hit its profitability goal next year, the headroom is obviously far greater.

 

That’s the technical look.  Now, it’s important to remember that resurgence in the housing sector has been fueled in part by the efforts of the Federal Reserve.  The impact of inevitable tapering – and eventual ending – of QE3 has yet to be determined.  Rising interest rates, pent-up demand subsiding or a slowdown in the economy can cause the housing recovery to grind to a much slower pace.  Things look strong at the moment, but there are still risks that must be considered.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for BZH
Seeking Alpha
26 Sep 14 11:44:20
Beazer Homes: Down, But Not Out http://t.co/PM5qZKrUNT $BZH
Daily Contracts
26 Sep 14 10:46:02
Real-Time feed of company contracts, original agreements and executive updates from Beazer Homes $BZH http://t.co/ciXZ3xjg5e
Seeking Alpha
26 Sep 14 09:25:37
A Skeptics View Of The Census Bureau's August New Home Sales Report http://t.co/KCAs3Nqkiw $BZH $KBH $LEN $PHM $RYL $TOL $DHI
Media Sentiment
26 Sep 14 07:54:40
$BZH received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 205
Market Int Center
26 Sep 14 07:52:05
Beazer Homes USA $BZH Showing Bearish Technicals With Support At $17.07 ( http://t.co/62E9ZWrKUW )
Media Sentiment
25 Sep 14 05:45:00
$BZH received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 104
Market Int Center
25 Sep 14 05:42:10
Beazer Homes USA $BZH Showing Bearish Technicals With Support At $17.31 ( http://t.co/H9aMHUnS8d )
Media Sentiment
24 Sep 14 10:13:57
$BZH received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 253
Market Int Center
24 Sep 14 10:06:51
Beazer Homes USA $BZH Showing Bearish Technicals With Resistance At $18.47 ( http://t.co/XAlBB4KrDT )
Peter Del Rey
24 Sep 14 08:48:32
RT @MandyCNBC: August sales of new homes surged by 18%. West purchases up 50% on mth. Northeast up 29%.$HOV $WLH $BZH $DHI #Housing
Ruth Logsdon
24 Sep 14 08:15:47
RT @MandyCNBC: August sales of new homes surged by 18%. West purchases up 50% on mth. Northeast up 29%.$HOV $WLH $BZH $DHI #Housing
Adam
24 Sep 14 07:18:29
RT @MandyCNBC: August sales of new homes surged by 18%. West purchases up 50% on mth. Northeast up 29%.$HOV $WLH $BZH $DHI #Housing
Chris Mitchell
24 Sep 14 07:14:45
RT @MandyCNBC: August sales of new homes surged by 18%. West purchases up 50% on mth. Northeast up 29%.$HOV $WLH $BZH $DHI #Housing
Rich Bitch
24 Sep 14 07:14:30
RT @MandyCNBC: August sales of new homes surged by 18%. West purchases up 50% on mth. Northeast up 29%.$HOV $WLH $BZH $DHI #Housing
Amanda Drury
24 Sep 14 07:12:15
August sales of new homes surged by 18%. West purchases up 50% on mth. Northeast up 29%.$HOV $WLH $BZH $DHI #Housing
Robert Moulton
24 Sep 14 06:19:03
RT @SeekingAlpha: High Builder Confidence Correlates With Housing Market Tops http://t.co/KQJU6nCQPf $BZH $DHI $KBH $LEN $PHM $RYL $TOL
sdh
24 Sep 14 06:16:43
RT @theflynews: $KBH $LEN $HOV $DHI $PHM $MDC $TOL $RYL $BZH KB Home drops 3% to $16.49 after Q3 results miss estimates: Full Story http://…
The Fly
24 Sep 14 06:05:35
$STRZA $FOX $FOXA $BBBY $BAX $MACK $GDOT $WMT $ACOR $CVTS $BZH $DHI $HOV $LEN $MDC $PHM $RYL $TOL $ACN $ATOS $... http://t.co/cZz5QYpX4a
The Fly
24 Sep 14 05:38:31
$KBH $LEN $HOV $DHI $PHM $MDC $TOL $RYL $BZH KB Home drops 3% to $16.49 after Q3 results miss estimates: Full Story http://t.co/iOxGjhDGm7
Georgia Retweet
23 Sep 14 22:54:58
RT @DailyContracts: $BZH News: Employment Agreement http://t.co/b8TzWezhcp #employmentagreement #georgia
Daily Contracts
23 Sep 14 21:42:12
$BZH News: Employment Agreement http://t.co/b8TzWezhcp #employmentagreement #georgia
Daily Contracts
23 Sep 14 21:12:11
$BZH News: Employment Agreement http://t.co/Zc5OZg2csM #employmentagreement #georgia
Geun-Soo Kim
23 Sep 14 18:16:06
Market Wrap: China Slowdown Fears Take the Air Out of Stocks http://t.co/QyQTJ9a4T5 @daily_finance $HOV $BZH $SIAL 님이 공유
Daily Contracts
23 Sep 14 15:36:10
$BZH News: Employment Agreement http://t.co/JnQ94iLmYi #employmentagreement #delaware
Executive Updates
23 Sep 14 08:40:00
Executive Updates: #beazerhomes $BZH #kennethfkhoury http://t.co/YiQmiMgSbR
Executive Updates
23 Sep 14 08:20:00
Executive Updates: #beazerhomes $BZH #robertlsalomon http://t.co/3o5xxpSAh8
Turner LaCas
23 Sep 14 06:32:26
Market Wrap: China Slowdown Fears Take the Air Out of Stocks http://t.co/gZlRTaNHtE via @daily_finance $HOV $BZH $SIAL
Stock Moo
23 Sep 14 03:44:19
$bzh: Beazer Homes to Present at the 22nd Annual Deutsche Bank Leveraged Finance Conference on September 30, 2014 http://t.co/f4hKYtG0aB
$Stocknewsalerts
23 Sep 14 03:33:17
$BZH Beazer Homes to Present at the 22nd Annual Deutsche Bank Leveraged Finance Conference on September 30, 2 From our Stock News Alerts App
NASDAQ
23 Sep 14 03:31:05
$BZH - Beazer Homes to Present at the 22nd Annual Deutsche Bank Leveraged Finance Conference on September 30 http://t.co/beLn1AN5LU
Stocks News&Markets
23 Sep 14 03:31:03
$BZH - Beazer Homes to Present at the 22nd Annual Deutsche Bank Leveraged Finance Conference on September 30 http://t.co/DOLfewrvHU
BV Industrial
23 Sep 14 03:30:07
$BZH Beazer Homes to Present at the 22nd Annual Deutsche Bank Leveraged Finance Conference on Septembe.. http://t.co/zhlEt6j1IP
IMG FUNDING
22 Sep 14 21:53:01
Market Wrap: China Slowdown Fears Take the Air Out of Stocks http://t.co/5aGXa4s8te via @daily_finance $HOV $BZH $SIAL
awolam
22 Sep 14 15:44:45
RT @SeekingAlpha: August Existing Home Sales Unexpectedly Drop, July Revised Lower http://t.co/DmzsDPK3S6 $BZH $DHI $KBH $LEN $PHM $RYL $TO…
Alysia Sarkisian
22 Sep 14 15:44:43
RT @SeekingAlpha: August Existing Home Sales Unexpectedly Drop, July Revised Lower http://t.co/DmzsDPK3S6 $BZH $DHI $KBH $LEN $PHM $RYL $TO…
ReggieMiddleton
22 Sep 14 15:43:53
RT @SeekingAlpha: August Existing Home Sales Unexpectedly Drop, July Revised Lower http://t.co/DmzsDPK3S6 $BZH $DHI $KBH $LEN $PHM $RYL $TO…
Seeking Alpha
22 Sep 14 15:43:40
August Existing Home Sales Unexpectedly Drop, July Revised Lower http://t.co/DmzsDPK3S6 $BZH $DHI $KBH $LEN $PHM $RYL $TOL $XHB
Stocks News&Markets
22 Sep 14 14:22:42
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/0QZ0aaRrQb
Stocks News&Markets
22 Sep 14 14:22:40
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/C6PFQY61hJ
Stocks News&Markets
22 Sep 14 14:22:39
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/Z5yKDzXH2m
$Stocknewsalerts
22 Sep 14 14:22:05
$BZH ALERT: New Beazer Homes USA Inc. SEC Filing From our Stock News Alerts App
4-traders.com
22 Sep 14 14:20:06
BEAZER HOMES USA : Change in Directors or Principal Officers (form 8-K) http://t.co/K8WEbvAcvz $BZH
Stocks News&Markets
22 Sep 14 14:19:43
$BZH - Current Report Filing (8-k) http://t.co/aFVY0RQ9Do
BV Industrial
22 Sep 14 14:18:13
$BZH Beazer Homes Usa Inc files Form 8-K (Events or Changes Between Quarterly Reports) SEC Filing.. http://t.co/rlwHYbeuqt
				
				
By  +Follow August 1, 2013 8:16AM
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