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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
Daily Contracts
31 Oct 14 14:41:02
Real-Time feed of company contracts, original agreements and executive updates from Beazer Homes $BZH http://t.co/ciXZ3xjg5e
MarketCurrents
31 Oct 14 14:39:10
After Hour Gainers / Losers http://t.co/8eOioCQmVy $BZH $GSAT $TTMI $ARNA
Media Sentiment
31 Oct 14 10:24:50
$BZH received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 387
Market Int Center
31 Oct 14 10:19:59
Beazer Homes USA $BZH Showing Bearish Technicals With Support At $17.19 ( http://t.co/PO4eap5kLn )
InterCooler
30 Oct 14 21:04:27
Beazer Homes USA Bonds Trading 1.5% Lower $BZH http://t.co/86i7uH9ggQ
Media Sentiment
30 Oct 14 12:50:18
$BZH received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 573
Market Int Center
30 Oct 14 12:45:36
Beazer Homes USA $BZH Showing Bearish Technicals With Resistance At $18.49 ( http://t.co/RL0Y2zjcGX )
Daily Contracts
30 Oct 14 07:08:02
Real-Time feed of company contracts, original agreements and executive updates from Beazer Homes $BZH http://t.co/ciXZ3xjg5e
$Stocknewsalerts
29 Oct 14 13:33:05
$BZH Beazer Homes USA, Inc. to Webcast Its Fourth Quarter and Full Year Fiscal 2014 Financial Results Confere From our Stock News Alerts App
Stocks News&Markets
29 Oct 14 13:31:28
$BZH - Beazer Homes USA, Inc. to Webcast Its Fourth Quarter & Full Year Fiscal 2014 Financial Results http://t.co/S80kTFyvnE
BV Industrial
29 Oct 14 13:30:10
$BZH Beazer Homes USA, Inc. to Webcast Its Fourth Quarter and Full Year Fiscal 2014 Financial Results .. http://t.co/txQpSrwleQ
Market Int Center
29 Oct 14 06:46:44
Beazer Homes USA $BZH Showing Neutral Technicals With Support At $17.64 ( http://t.co/xNoVI602ei )
Chayton Falke
28 Oct 14 12:40:06
#Russell2000 #recent #market #exit #18: Sold $BZH long for a 8.84% #gain in 9 days! #BZH #forex #trading #stocks
Brian Roy
28 Oct 14 08:48:20
RT @BogotaGringo: Banks looser, and double bottoms, builders poised for breakouts to upside. $BZH $DHI $LEN $MHO $NVR $PHM $RYL $TRI http:…
Lyle Shilling
28 Oct 14 08:32:31
RT @BogotaGringo: Banks looser, and double bottoms, builders poised for breakouts to upside. $BZH $DHI $LEN $MHO $NVR $PHM $RYL $TRI http:…
Bail O'Nomics
28 Oct 14 07:14:56
Gen Y Home Buyers Never Materialized? No Worries Here Comes Gen Z @Z @TRLA @ MOVE $TOL $BZH $KBH $HOV $DHI $BZH http://t.co/X0YqNVoZmk
Market Int Center
28 Oct 14 05:47:57
Beazer Homes USA $BZH Showing Neutral Technicals With Resistance At $18.57 ( http://t.co/QE5Z8qgW4k )
Chayton Falke
28 Oct 14 02:40:01
#Russell2000 #recent #market #exit #18: Sold $BZH long for a 8.84% #gain in 9 days! #BZH #forex #trading #stocks
Mark Poulin
27 Oct 14 20:36:49
Banks looser, and double bottoms, builders poised for breakouts to upside. $BZH $DHI $LEN $MHO $NVR $PHM $RYL $TRI http://t.co/EOvD6hFUTQ
Mark Poulin
27 Oct 14 20:24:38
Banks looser, and double bottoms, builders poised for breakouts to upside. $BZH $DHI $LEN $MHO $NVR $PHM $RYL $TRI http://t.co/1hmu37BJdB
Daily Contracts
27 Oct 14 07:53:03
Real-Time feed of company contracts, original agreements and executive updates from Beazer Homes $BZH http://t.co/ciXZ3xjg5e
DailyStockPicks
27 Oct 14 07:22:20
$OC headed for a collapse. Analyst downgrades. New 52-week lows soon $BZH investors read: http://t.co/LWinuNFSq5 http://t.co/WMpwyqa8An
Penny Stock Secret
27 Oct 14 02:28:20
The Hottest Way to Make Millions From Stock Market.Click HERE http://t.co/SVqoMkrw2z .. $BYM $BZH $BZT
TickerChirp
27 Oct 14 01:44:07
Leading Tweets Concerning $BZH (Beazer Homes Usa Inc symbol BZH) on 10/27/2014 http://t.co/w6GRo5qXr5
Jack
26 Oct 14 17:23:16
My 4 negative shorts, $AXP, $BBRY, $BZH, $DDR, have all been relatively weak vs. market. Once overbought condition corrects, should be ok.
wininstocks2014
25 Oct 14 08:47:20
BZH 18.09 Stock Charts $BZH Beazer Homes USA Inc. (NYSE) Last Updated: 10/25/2014 10:47:20 BZH Stock Chart - 1 http://t.co/rZDfqKsFcB
Seeking Alpha
24 Oct 14 11:33:40
New Homes Sales: September Report Confirms That The Data Is Unreliable http://t.co/sG9Kdfanv6 $BZH $HOV $LEN $PHM $RYL $TOL
Market Int Center
24 Oct 14 08:38:03
Potential Beazer Homes USA $BZH Trade Has 15.20% Downside Protection ( http://t.co/x2qIqzO0gY )
Myrollingstocks
24 Oct 14 08:20:39
we think this stock may be a winner today $BZH http://t.co/m7vgIPcTIp
				
				
By  +Follow August 1, 2013 8:16AM
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