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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.

Results for BZH
iHangout
20 Apr 14 18:36:13
chartguy89: Stock Charts: BZH 18.52 Stock Charts $BZH Beazer Homes USA Inc. http://t.co/skFQJFdP22
chartguy89
20 Apr 14 18:35:03
BZH 18.52 Stock Charts $BZH Beazer Homes USA Inc. (NYSE) BZH Stock Chart - 1 Month http://bigcharts.marketwatc http://t.co/3yG7QWVMIX
Rudolf Shavera
20 Apr 14 13:00:19
$BZH Beazer Homes USA, Inc. to Webcast It http://t.co/zI0X6fu1up
Stock_Tracker
20 Apr 14 12:23:26
Beazer Homes USA (BZH) 18.52 $BZH Will the Housing Market Stay in the Tank? Let's Crunch the Numbers on Homebu http://t.co/Bu0hTiJIJk
Insider Trade Alerts
20 Apr 14 08:56:41
$BZH Beazer Homes USA, Inc. to Webcast It http://t.co/12Mq1zi79k
Tressie Fortenberry
20 Apr 14 06:40:51
$BZH Beazer Homes USA, Inc. to Webcast It http://t.co/14qvpHZ3Gk
Crew Gretzky
20 Apr 14 05:11:29
$BZH Beazer Homes USA, Inc. to Webcast It http://t.co/OEbnh6P32I
Hart Gunner
20 Apr 14 02:22:09
$BZH Beazer Homes USA, Inc. to Webcast It http://t.co/wppuAz5qLA
Small Cap Strategist
18 Apr 14 13:12:43
Most searched small-cap stocks, Fri Apr 18th - $HZNP $IL $NSPH $GLOG $DWCH $BZH $SMT $SNMX $GALT - More: http://t.co/1znvSOrGTT - #smallcap
Brecken Kingston
18 Apr 14 10:03:57
$BZH Beazer Homes USA, Inc. to Webcast It http://t.co/EezWqcKiKH
Zolmax News
18 Apr 14 09:43:10
Beazer Homes USA Given “Sell” Rating at Citigroup Inc. $BZH http://t.co/BAoePVMFeV
Jaydan Gelson
18 Apr 14 05:45:47
$BZH Beazer Homes USA, Inc. to Webcast It http://t.co/0r4kHmDhRb
US Banking News
17 Apr 14 15:43:33
Beazer Homes USA Stock Rating Reaffirmed by Citigroup Inc. $BZH http://t.co/AFcfSnsqIO
Analyst Ratings
17 Apr 14 11:16:59
Beazer Homes USA's sell rating reiterated at Citigroup Inc.. $15.00 PT. http://t.co/HWueOS1FUF $BZH #BZH
US Consumer News
17 Apr 14 11:16:07
Beazer Homes USA's sell rating reiterated at Citigroup Inc.. $15.00 PT. http://t.co/ikacxUCsYc $BZH #BZH
Livevol Community
17 Apr 14 09:00:03
HIGH PUT VOLU $DBD 2312% $ZTS 1727% $IDIX 939% $BZH 861% $CYTK 697% $RDN 533% $EWH 439% $CALL 432% http://t.co/D6zLlKlLNO
Market Int Center
17 Apr 14 05:23:05
Beazer Homes USA $BZH Showing Resistance Near $19.58 ( http://t.co/vR19HyxYKm )
Andie Andrewson
17 Apr 14 02:16:36
$BZH Beazer Homes USA Receives Average Recommendation of "Hold" from ... http://t.co/30UbXA8imN
Gavin B Davis
16 Apr 14 20:06:31
RT @cpb24: @DavidSchawel agreeing with you. HY spreads have absorbed 70% of rate rise YoY. All while lev ^ & co like $BZH issue bonds with …
David Schawel
16 Apr 14 20:05:25
RT @cpb24: @DavidSchawel agreeing with you. HY spreads have absorbed 70% of rate rise YoY. All while lev ^ & co like $BZH issue bonds with …
CPB24
16 Apr 14 20:01:57
@DavidSchawel agreeing with you. HY spreads have absorbed 70% of rate rise YoY. All while lev ^ & co like $BZH issue bonds with IG covenants
Market Int Center
15 Apr 14 08:46:06
Beazer Homes USA $BZH Showing Resistance Near $19.53 ( http://t.co/Wgm71uaX0y )
Equities.com
15 Apr 14 06:53:13
Selling Climax Still to Come ? $DHI $KBH $TOL $PHM $BZH http://t.co/APSDOoklAs
Tory Hollenberg
15 Apr 14 05:20:05
$BZH: Beazer Homes USA, Inc. to Webcast Its Second Quarter Fiscal 2014 Finan... http://t.co/CwXp0xlvPD
Byrne Bray
15 Apr 14 05:03:03
$BZH: Beazer Homes USA, Inc. to Webcast Its Second Quarter Fiscal 2014 Finan... http://t.co/lamWdZhfkz
LoveStockNews
15 Apr 14 04:42:26
$BZH - Beazer Homes USA, Inc. to Webcast Its Second Quarter Fiscal 2014 Finan... -> http://t.co/K7hzjVydjg #stock #stocks #stockaction
Stock Flower
15 Apr 14 04:15:15
$BZH Beazer Homes USA, Inc. to Webcast Its Second Quarter Fiscal 2014 Financial Results Conference Call on May 1, 2014...
MidNorl
15 Apr 14 04:15:07
$BZH Beazer Homes USA, Inc. to Webcast Its Second Quarter Fiscal 2014 Financial Results Conference Call on May 1, 2014...
4-traders.com
15 Apr 14 03:35:02
Beazer Homes USA : to Webcast Its Second Quarter Fiscal 2014 Financial Results Conference Call on May 1, 2014 http://t.co/GHmHKKjyF0 $BZH
$Stocknewsalerts
15 Apr 14 03:33:36
$BZH Beazer Homes USA, Inc. to Webcast Its Second Quarter Fiscal 2014 Financial Results Conference Call on May 1, 2014
VisualStock Resource
15 Apr 14 03:31:23
$BZH - Beazer Homes USA, Inc. to Webcast Its Second Quarter Fiscal 2014 Financial Results Conference Call on http://t.co/FuRDU4TTct
Major Brown
14 Apr 14 13:47:23
$BZH BEAZER HOMES USA INC Files SEC form 8-K, Entry into a Material D http://t.co/kbbiLGKpd4
MidNorl
14 Apr 14 11:57:35
$BZH Mortgage rates: Possibility of hikes stokes housing demand http://t.co/Q8wZxiguDT
Equities.com
14 Apr 14 06:38:52
Spring Surge Still in the Cards $BZH $PHM $TOL $KBH $DHI http://t.co/zRnx7e2DY8
				
				
By  +Follow August 1, 2013 8:16AM
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