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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for BZH
Breaking News Now
22 May 15 04:47:03
$BZH: Why Beazer Homes USA (BZH) Stock Might be a Great Pick: http://t.co/mRXKsqIIzG
Bill Stoller
21 May 15 09:13:24
PulteGroup $PHM Ryland Homes $RYL Meritage Homes $MTH Beazer Homes $BZH $CCS $WCIC WCI Communities #Home #Builders https://t.co/pGOJ7Guo5P
Market Int Center
21 May 15 08:24:09
Potential Beazer Homes USA $BZH Trade Has 11.42% Downside Protection ( http://t.co/E2kt0WSlte )
leahanne
20 May 15 17:38:36
IWM Russell 2000 iShares Stock Forum Click Here -> http://t.co/rgEnEsu5nL Trending $IWM $EWO $BZH $JNK #IWM #invest #finance
clayton
20 May 15 17:33:06
BZH Beazer Homes USA, Inc. Ideas Click Here -> http://t.co/FJmhlZTqSN Trending $BZH $NAT $ADMD $ADMD #BZH #invest #invest
Market Int Center
20 May 15 12:53:10
Beazer Homes USA $BZH Showing Support Near $18.05 ( http://t.co/E1TKzHBUKU )
Irma Doucet
20 May 15 08:07:16
$BZH Stock to Follow: Beazer Homes USA Inc (NYSE:BZH) http://t.co/LrqCqDcEnU
Clair Voight
20 May 15 08:07:13
$BZH Beazer Homes USA Inc. (BZH) is Trading Higher on Unusual Volume for May 19 http://t.co/FILlbIhNBt
Velveeta
20 May 15 06:43:05
out $BZH starter
Velveeta
20 May 15 06:37:45
small on $BZH waiting for the vol to creep
Velveeta
20 May 15 06:37:12
long $BZH
Velveeta
20 May 15 06:20:04
watching $GPOR $ADBE $ADSK $ALK $BZH $TRIL $PTBI $OPK
Manny Alvarez
20 May 15 04:27:45
RT @Dvm001Mike: Pickle's Picks for Wednesday - $BZH,$JAKK,$LPX,$MNKD,$NAT, http://t.co/qD5hpvNdP3,
Velveeta
20 May 15 04:23:05
$BZH http://t.co/ZsuskbjhU3
Breaking News
20 May 15 04:18:03
$BZH: Large Outflow of Money Witnessed in Beazer Homes USA, Inc.: http://t.co/Mog8AwJntO
Mike Richardson
19 May 15 10:57:04
Homebuilders: $BZH+2.3%, $DHI +2%.HOV +2%, $KBH +3 4%, $LEN +1 1%, $LGIH -0.7%, $PHM +1.5%, $RYL +2%, $SPF +2.8%, $TOL +1%, $Z -1%.
Stockguy22University
19 May 15 10:13:18
RT @stockguy22: Housing Starts this a/m initially helped #homebuilders $TOL $LEN $PHM $TMHC $BZH etc. but they dipped back a bit from highs
Stockguy22
19 May 15 10:13:12
Housing Starts this a/m initially helped #homebuilders $TOL $LEN $PHM $TMHC $BZH etc. but they dipped back a bit from highs
Market Int Center
19 May 15 08:34:08
Beazer Homes USA $BZH Trading Near $17.81 Support Level ( http://t.co/OTeoVSmJYR )
#
19 May 15 06:27:12
April Housing Data Obliterates Expectations; Investors Buy In $BZH $HOV $KBH via @benzinga http://t.co/zN9UGa7xpB
TheBurdetteLawFirm
19 May 15 06:25:19
April Housing data better than expected, should buoy home buiders: $BZH $HOV $KBH $KBH $HOV $LEN
Benzinga.com
19 May 15 06:00:09
April Housing Data Obliterates Expectations; Investors Buy In $BZH $HOV $KBH $KBH $HOV $LEN http://t.co/0EzaaDcW9F
Bill Mc
19 May 15 05:55:08
April Housing Data Obliterates Expectations; Investors Buy In $BZH $HOV $KBH http://t.co/gcRieo79EO via @benzinga
Penny Stock Secret
18 May 15 08:38:41
Ranks #1 with over 80% in alert gains today. Click here http://t.co/NovWYe2RAx .. $BYM $BZH $BZT
InvestWithConf
17 May 15 18:44:02
$BZH is rated BUY, 13.6% upside by Wall Street analysts based on average ratings/targets http://t.co/NVNHXgUyEJ http://t.co/f4al7XwLpT
Venky Srinivasan
17 May 15 11:56:01
$BZH Nice move on Friday on heavy volume. BB opening up. Look for continuation. Bullish momentum indicators. http://t.co/R96WJKZcjc
Ben Silverberg
16 May 15 08:22:35
$BZH lift-off after riding 50dSMA for a month, Continuation Play, S 18.34, Stop 17.93, over R 19.00 sees 20.30 http://t.co/SBIPvB000F
Rosner Stocks
16 May 15 05:47:36
UNH Unitedhealth Group, Inc. Exchange Click Here -> http://t.co/djMGoyB7uP Trending $UNH $FBIOX $USO $BZH #UNH #stockmarket #stocks
danrocks
16 May 15 05:38:36
GPRO GoPro, Inc. Ask Size Click Here -> http://t.co/WuqIlF6L6U Trending $GPRO $CDE $STO.V $BZH #GPRO #pennystocks #investing
DennyT
16 May 15 05:34:09
BZH Beazer Homes USA, Inc. Bid Size Click Here -> http://t.co/lx8Jd4dK0g Trending $BZH $BIDU $AMBA $XLV #BZH #share #share
Velveeta
16 May 15 05:29:03
$BZH on my back burner but seems to be moving along http://t.co/D8YjPm5uol
ProTradersNews
16 May 15 05:16:02
$WIN $BZH: Small Cap Stock Picking – Windstream (NASDAQ:WIN), Beazer ...: http://t.co/no6tk0SEwu
Jeffrey Blake
15 May 15 15:36:00
$BZH Beazer Homes USA, Inc. (BZT) Ex-Dividend Date Scheduled for April 10, 2015 http://t.co/vWtECL8DJh
SwingTradeBot
15 May 15 14:39:16
Scan results - Expansion Pivot Buy Setup today: $POM $CAR $DAR $NCR $M $CASY $PCP $SEM $BZH $PX ... http://t.co/8ajjFNaHDN
SwingTradeBot
15 May 15 14:34:01
Scan results - 50 DMA Support today: $VNDA $DE $SYMC $TK $BZH $HLT $FII $SIG $ARMH $UMPQ ... http://t.co/vipYMl8QsX
James P Worthy
15 May 15 14:04:59
$BZH Stock to Follow: Beazer Homes USA Inc (NYSE:BZH) http://t.co/kTJrsWqPyT
Stock Trade Alerts
15 May 15 10:35:09
Price Action Alert $BZH - BEAZER HOMES USA #stocks #intraday ~ via #AlertTrade
Livevol Community
15 May 15 05:00:04
HIGH PUT VOLU $SBGL 16363% $ODP 8222% $BZH 4208% $GIL 3803% $SXL 3349% $WRLD 3317% $LYG 3191% $HIL 2785% http://t.co/gwzPxh5Y4R
DailyStockPicks
14 May 15 22:51:53
Second Sight $30 target after strong Q1 financial results. 159% revenue growth YoY $BZH $ERF $SCS investors read http://t.co/kuh3t64LGK
SwingTradeBot
14 May 15 14:33:41
Scan results - 50 DMA Support today: $GIL $VSTO $MOMO $TK $MRH $XHR $SIG $CSX $FEYE $BZH ... http://t.co/T2wxtfYMp5
Invest | Donate
14 May 15 12:23:02
@1LuckyJimmy: DOLLF Day Low Click Here -> http://t.co/fYXOJtCLjA Trending $DOLLF $BWAV $BZH $SRRE #DOLLF #stock #invest
Lucky Jimmy
14 May 15 12:02:06
DOLLF Day Low Click Here -> http://t.co/2H1Wvw0Q04 Trending $DOLLF $BWAV $BZH $SRRE #DOLLF #stock #invest
Market Int Center
14 May 15 12:01:31
Potential Beazer Homes USA $BZH Trade Targets 5.72% Return ( http://t.co/wxEKFUjqeb )
Ophir Gottlieb
14 May 15 11:37:07
5-14-15: Daily Open Interest & Option Volume Report $HDP $EIX $CATM $ODP $HW $BZH - See the full list: http://t.co/T8LbnQEJWW
IH News Desk
14 May 15 11:29:34
QATAF Stock Forum Click Here -> http://t.co/xWoZl8fZLj Trending $QATAF $SMIVY $BGR $BZH #QATAF #investing #invest
clayton
14 May 15 11:14:52
GDFLY % Change Click Here -> http://t.co/1I3CJI4Ecf Trending $GDFLY $ZEUS $BZH $HMNU #GDFLY #stocks #stock
Livevol Community
14 May 15 09:00:05
HIGH PUT VOLU $WRLD 3237% $HIL 2539% $BZH 2318% $SIG 1753% $DHR 1186% $AXLL 1066% $DDS 1046% $KSS 976% http://t.co/gwzPxh5Y4R
Alexander Morris
14 May 15 07:43:58
$BZH: At/Below 200DaySMA[-17.78]:1d, cl:+15, 8NearHi, PrvCLo, 24:3Accel+, tf:0011111, ch:+1.4%, lowFlt:21M, HiPctSht[21%:7d]
				
				
By  +Follow August 1, 2013 8:16AM
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