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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
DEE JOHNSON - EWING
24 Nov 14 07:50:10
RT @SeekingAlpha: Some Small Cap Gems In Housing To Consider http://t.co/e4jufeA5cM $TPH $BZH
Charlie
24 Nov 14 07:49:11
$BZH $20.10
Seeking Alpha
24 Nov 14 07:47:20
Some Small Cap Gems In Housing To Consider http://t.co/e4jufeA5cM $TPH $BZH
$Stocknewsalerts
24 Nov 14 05:02:22
$BZH Beazer Homes Hosts National Toy Drive and Social Media Contest to Donate to Toys for Tots From our Stock News Alerts App
NASDAQ
24 Nov 14 05:01:05
$BZH - Beazer Homes Hosts National Toy Drive and Social Media Contest to Donate to Toys for Tots http://t.co/ciqASynQH0
Stocks News&Markets
24 Nov 14 05:01:03
$BZH - Beazer Homes Hosts National Toy Drive and Social Media Contest to Donate to Toys for Tots http://t.co/wHYfJKCWJL
NoSQL
24 Nov 14 04:33:33
RT @StockFluence: Beazer Homes USA Inc.: 81 (-3.37%) http://t.co/Jmlzx5q7jt $BZH #BeazerHomes #Sentiment #Stock #Analysis #BigData
StockFluence.com
24 Nov 14 04:01:23
Beazer Homes USA Inc.: 81 (-3.37%) http://t.co/Jmlzx5q7jt $BZH #BeazerHomes #Sentiment #Stock #Analysis #BigData
TickerChirp
23 Nov 14 22:21:05
Hot Tweets Related to $BZH (Beazer Homes Usa Inc symbol BZH) on 11/24/2014 http://t.co/ojhfrcXGYS
Sonya Mays, MBA
23 Nov 14 20:56:33
Home Buys: Big Investors Dropping Off, Shifting Focus http://t.co/rij8EzkB7v #IBDNews via @IBDinvestors $AMH $ARPI $SWAY $BX $BZH
Investors Hangout
23 Nov 14 17:15:09
chartguy89: BZH 19.99 Beazer Homes USA Stock Charts $BZH Last http://t.co/F9eoTCjuKt
chartguy89
23 Nov 14 17:09:05
BZH 19.99 Beazer Homes USA Stock Charts $BZH Last Updated: 11/21/14 Last price: 19.99 Total volume: 832,800 BZ http://t.co/RB78IsbyBo
Jake13
23 Nov 14 16:49:15
BZH Year to date has changed -18.14% percent. +9.84% in the last 30 days. $BZH Beazer Homes USA Full breakdown http://t.co/633Qs9CRBG
Seeking Alpha - All
21 Nov 14 11:47:19
October Existing Home Sales Were Driven By Flippers http://t.co/D2sXsTrYFA $BZH $DHI $KBH $LEN $PHM $RYL $TOL
Stockguy22University
21 Nov 14 09:52:23
RT @stockguy22: http://t.co/VrmydfZJGE look at some of the nice charts & recoveries on the Builders the past month $LEN $DHI $HOV $PHM $BZH…
Stockguy22University
21 Nov 14 09:52:18
RT @stockguy22: $TOL back over 200day sma today .. holding well over $35 .. #Builders have had nice action past month $LEN $HOV $PHM $BZH …
Stockguy22
21 Nov 14 09:52:11
http://t.co/VrmydfZJGE look at some of the nice charts & recoveries on the Builders the past month $LEN $DHI $HOV $PHM $BZH $TMHC etc
Stockguy22
21 Nov 14 09:50:11
$TOL back over 200day sma today .. holding well over $35 .. #Builders have had nice action past month $LEN $HOV $PHM $BZH $TMHC $DHI etc.
Kevin Lewis
21 Nov 14 09:20:05
$BZH now in the red
12Stocks.com
21 Nov 14 08:53:57
SmallCap #Stocks Trend $AGIO $JACK $MTSI $OPLK $DCT $DRH $BZH $LPX $XON $ERII $MTG $BIOL $LIOX $MGNX more@ http://t.co/GiravokQod
Media Sentiment
21 Nov 14 05:25:13
$BZH received a new alert. Find out why at http://t.co/5lwmDm2SCs #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 99
Market Int Center
21 Nov 14 05:22:50
Beazer Homes USA $BZH Showing Bullish Technicals With Resistance At $20.87 ( http://t.co/pHXMVTKc0n )
chartguy89
20 Nov 14 20:47:58
BZH 19.95 Beazer Homes USA Stock Charts $BZH Last Updated: 11/20/14 Last price: 19.95 Total volume: 713,579 BZ http://t.co/gdjGmFR1In
chartguy89
20 Nov 14 20:47:40
$BZH BZH 19.95 Beazer Homes USA Stock Charts $BZH Last Updated: 11/20/14 Last price: 19.95 Total volume: 713,579 BZ http://t.co/nOXhoIylG3
Jake13
20 Nov 14 20:47:10
BZH Year to date has changed -18.30% percent. +12.90% in the last 30 days. $BZH Beazer Homes USA Full breakdow http://t.co/SMHWGpnAFF
Jake13
20 Nov 14 20:46:48
$BZH BZH Year to date has changed -18.30% percent. +12.90% in the last 30 days. $BZH Beazer Homes USA Full breakdow http://t.co/fNM9xH2wqI
Michael Bull, Host
20 Nov 14 17:11:52
RT @AtlBizChron: .@BeazerHomes swings to $34.4 million profit in fiscal 2014 http://t.co/72W3XhyFbj $BZH #earnings http://t.co/v3pl6K15wO
Media Sentiment
20 Nov 14 08:44:48
$BZH received a new alert. Find out why at http://t.co/5lwmDm2SCs #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 267
Market Int Center
20 Nov 14 08:42:31
Beazer Homes USA $BZH Showing Bullish Technicals With Support At $19.06 ( http://t.co/mRihHF7uyZ )
OTPicks.com
20 Nov 14 08:36:01
http://t.co/WZ6FGvJQNb Zephyr: $BZH over $20 home builders showing strength today: Zephyr http://t.co/IimCMP19gw http://t.co/WZ6FGvJQNb
OTPicks- OnTimePicks
20 Nov 14 08:35:58
http://t.co/f15mUdD9Cd Zephyr: $BZH over $20 home builders showing strength today: Zephyr http://t.co/YJ7b64W08w http://t.co/f15mUdD9Cd
OTPicks.com
20 Nov 14 08:35:52
http://t.co/y0P0rwqW7P Zephyr: $BZH over $20 home builders showing strength today: Zephyr http://t.co/4DuWwsoVwM http://t.co/y0P0rwqW7P
O T P i c k s . com
20 Nov 14 08:35:47
http://t.co/x5EzijWmSl Zephyr: $BZH over $20 home builders showing strength today: Zephyr http://t.co/mV8jIgDI1n http://t.co/x5EzijWmSl
Zephyr
20 Nov 14 08:09:24
$BZH over $20 home builders showing strength today $HOV $SPF $ITB
Markos Kaminis
20 Nov 14 05:38:54
Commented on: "Homebuilders Are Feeling Lucky For Good Reason" http://t.co/rTWoZMpdRK $XHB $BAC $BZH $DHI
Seeking Alpha - All
19 Nov 14 23:00:18
Housing Market Data This Week: False Flag Reports http://t.co/82VoRiTfMq $BZH $DHI $KBH $LEN $PHM $RYL $TOL $XHB
Market Int Center
19 Nov 14 08:33:00
Beazer Homes USA $BZH Trading Near $19.11 Support Level ( http://t.co/1TY9CpJ2hK )
Seeking Alpha - All
19 Nov 14 00:54:19
Homebuilders Are Feeling Lucky For Good Reason http://t.co/8gS87zGGdZ $XHB $BAC $BZH $DHI $KBH $LEN $PHM $TOL
Jake13
18 Nov 14 21:54:22
BZH Year to date has changed -19.33% percent. +11.24% in the last 30 days. $BZH Beazer Homes USA Full breakdow http://t.co/uyb4hwmz5l
Jake13
18 Nov 14 21:54:00
$BZH BZH Year to date has changed -19.33% percent. +11.24% in the last 30 days. $BZH Beazer Homes USA Full breakdow http://t.co/A031WyG7WZ
Penny Stock Secret
18 Nov 14 20:45:18
Yesterday We Made $89,000 In Just One Trade More Info Here http://t.co/SVqoMlijqL .. $BYM $BZH $BZT
$Stocknewsalerts
18 Nov 14 12:01:49
$BZH ALERT: New Beazer Homes USA Inc. SEC Filing From our Stock News Alerts App
Stocks News&Markets
18 Nov 14 12:01:14
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/iGOCsLAPV0
Stocks News&Markets
18 Nov 14 12:01:13
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/cdaIANd42f
Stocks News&Markets
18 Nov 14 12:01:12
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/3FwsVgbVOc
NASDAQ
18 Nov 14 12:01:08
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/tq9hNIsHiH
NASDAQ
18 Nov 14 12:01:06
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/4Q7HWaWc0W
NASDAQ
18 Nov 14 12:01:05
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/SMaqQflUnF
NASDAQ
18 Nov 14 11:58:21
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/YvtjP4pW3u
NASDAQ
18 Nov 14 11:58:19
$BZH - Statement of Changes in Beneficial Ownership (4) http://t.co/853q4vJjpX
				
				
By  +Follow August 1, 2013 8:16AM
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