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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
Stock Market Basics
27 Apr 15 06:48:42
RT @10Xtrading: New Home Sales: The Price Of Lumber Is Forecasting A Big Downturn http://t.co/iR1BjGFqoV $BZH $CB $DHI $KBH $LEN $LGIH $PHM…
10X Trading
27 Apr 15 06:35:01
New Home Sales: The Price Of Lumber Is Forecasting A Big Downturn http://t.co/iR1BjGFqoV $BZH $CB $DHI $KBH $LEN $LGIH $PHM $RYL $TOL
Seeking Alpha
27 Apr 15 06:21:13
New Home Sales: The Price Of Lumber Is Forecasting A Big Downturn http://t.co/sMbzAzi3AS $BZH $CB $DHI $KBH $LEN $LGIH $PHM $RYL $TOL
Media Sentiment
27 Apr 15 06:04:52
$BZH received a new alert. Find out why at http://t.co/nZwqRf3BRT #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 186
Market Int Center
27 Apr 15 06:01:38
Beazer Homes USA $BZH Showing Bearish Technicals With Support At $17.09 ( http://t.co/luhogXwzPg )
chartguy89
26 Apr 15 11:12:41
BZH +2.02% Stock Charts $BZH Beazer Homes USA Inc. (NYSE) Last Updated: 04/26/2015 13:12:40 BZH Stock Chart - http://t.co/I8irkuLmGw
Stock_Tracker
26 Apr 15 11:04:42
Beazer Homes USA (BZH) 17.69 $BZH March Existing Home Sales: More Sizzle Than Substance Dave Kranzler - at See http://t.co/KCfWl8mLac
akflyer
25 Apr 15 03:21:48
@ChessTrades what do you think about homies? $LEN $BZH $KBH
IH News Desk
25 Apr 15 00:48:26
Stocks Trending Now: http://t.co/Ly6bZh9FE6 $BZH $LRAD $LEU $DPZ $TPX $ALGT $KO $RCPT $ERI $FTR $RTI $KELYA ~
Invest | Donate
24 Apr 15 21:38:09
@stock_forums: $DHR Current Price Click Here: http://t.co/XF8d8aQhET Also See: $BZH $PCYC $RWLK $CYBR #stockmarket #invest #stocks ~
Stock Forums
24 Apr 15 21:07:42
$DHR Current Price Click Here: http://t.co/dS21pZIULI Also See: $BZH $PCYC $RWLK $CYBR #stockmarket #invest #stocks ~
Invest | Donate
24 Apr 15 15:34:28
@Chasing__Stars: $BZH Ideas Click Here: http://t.co/kX6oyHqpRo Also See: $AHFD $PW $MRO $BMI #stockmarket #invest #stocks ~
danrocks
24 Apr 15 15:25:59
Do you follow $BZH Click Here: http://t.co/zlZnW0fi5i Also See: $ETFC $MVG $NOW $BA ~
Brian Ripley
24 Apr 15 13:03:43
PLUNGE-O-NOMICS 2/3 But Homebuilder $DHI got schmeissed along with $LEN, $PHM, $BZH, $BAM, $ITB, & $HGX this week http://t.co/Ccav8l2g7Y
nasdaqfan
24 Apr 15 12:48:26
$BZH E.P.S. Click Here: http://t.co/LrVn4m0Dn5 Also See: $EPAZ $CO $OXM $ADPT ~
nasdaqfan
24 Apr 15 12:13:33
$BZH Last Price Click Here: http://t.co/q4iObtYVNo Also See: $HSBC $WBC $HLSS $PG ~
Market Int Center
24 Apr 15 12:03:39
Beazer Homes USA $BZH Trading Near $16.85 Support Level ( http://t.co/Y1l5loCSDc )
DennyT
24 Apr 15 11:13:44
$AKS Tick Click Here: http://t.co/PpRify9FgL Also See: $DEST $BZH $TXN $SZMK ~
clayton
24 Apr 15 06:15:03
$BZH Company Info Click Here: http://t.co/3hb4q7ILzk Also See: $LLY $RLTR $MNTA $LXFT ~
clayton
24 Apr 15 06:06:00
$BZH Stock Message Board Click Here: http://t.co/IGlOxsfJNt Also See: $DST $GRC $AAP $CYT ~
Rosner Stocks
24 Apr 15 02:05:21
$JPM Shares Click Here: http://t.co/YRFFqODcKw Also See: $ARRS $ARO $JD $BZH ~
Quantpost Industrial
23 Apr 15 23:18:25
$DHI News: "March Existing Home Sales: More Sizzle Than Substance $BZH $DHI $KBH …" http://t.co/NxDiMD92h6 Analyze: https://t.co/6qdwjnxJec
Seeking Alpha
23 Apr 15 23:18:22
March Existing Home Sales: More Sizzle Than Substance http://t.co/9VpyBDbm9V $BZH $DHI $KBH $LEN $PHM $RYL $TOL
clayton
23 Apr 15 22:05:19
$CMGE Shares Click Here: http://t.co/yzVs81izsl Also See: $CNC $JRJC $BZH $CX ~
Chasing Stars
23 Apr 15 13:36:59
$CPTA Tick Click Here: http://t.co/hvL5UFjV8z Also See: $BZH $RGLS $EQM $KBH ~
Stock_Tracker
23 Apr 15 13:16:51
#1 site for investors! $MCEP Click Here: http://t.co/UaX6XeALRW Also See: $VRX $CVSL $CLR $BZH ~
Daily Contracts
23 Apr 15 13:06:01
Real-Time feed of company contracts, original agreements and executive updates from $BZH http://t.co/LKQMm4wsRZ
David Shvartsman
23 Apr 15 12:47:34
Homebuilders largely flat the past 2 years. While $XHB is up 10%, $KBH $BZH $MTH $PHM drifted lower off their highs.
Grant Dossetto
23 Apr 15 11:42:54
@DividendMaster @chet1970 I won't forget last October on the $BZH call they said they expected 20% bump in sales and 20% gain in ASP in '15.
clayton
23 Apr 15 10:19:23
Stocks Trending Now: http://t.co/Af25ejzi9i $DGX $ERII $ABBV $FBP $BCC $ECDP $RTI $AST $F $SREH $LOCO $BZH ~
Stock Trade Alerts
23 Apr 15 09:03:48
SHORT Seller Alert $BZH - BEAZER HOMES USA #ShortSeller #Stocks ~ via #AlertTrade
Market Int Center
23 Apr 15 08:58:11
Beazer Homes USA $BZH Showing Bullish Technicals With Resistance At $18.79 ( http://t.co/UPu7uKhVns )
Chet Malhotra
23 Apr 15 08:39:06
RT @GrantDossetto: @chet1970 @DividendMaster @thirdgenwidget Horrible numbers for $PHM. I can't wait to see what $BZH does next week.
Grant Dossetto
23 Apr 15 07:38:02
@chet1970 @DividendMaster @thirdgenwidget Horrible numbers for $PHM. I can't wait to see what $BZH does next week.
PrivateCapBlogger
23 Apr 15 07:18:07
PulteGroup earnings, soft new home sales lead homebuilders lower $TOL $HOV $LEN $RYL $DHI $KBH $BZH $SPF http://t.co/8iQER45FBe
Jeffrey Blake
23 Apr 15 07:06:26
$BZH Stock to Follow: Beazer Homes USA Inc (NYSE:BZH) http://t.co/ikEljLCztv
StockEarnings.com
22 Apr 15 23:15:24
$BZH releasing Earnings on 4/30 Before Open (Confirmed). Anybody buying/selling in Earnings? http://t.co/vGZbmv2lXK
Alan Farley
22 Apr 15 13:55:10
Analyze Relative Strength On Your Trading Strategy $SPY $QQQ $ITB $BZH $GM $F http://t.co/mDi7aOB2rN via Farley @Investopedia
Grant Dossetto
22 Apr 15 12:24:17
@KeithMcCullough With homebuilders like $DHI moving toward lower end starter homes, are weak builders like $BZH exposed to margin crunch?
Daily Contracts
22 Apr 15 10:31:02
Real-Time feed of company contracts, original agreements and executive updates from $BZH http://t.co/LKQMm4wsRZ
Grant Dossetto
22 Apr 15 09:10:51
@jessefelder I have no idea how $KBH or $BZH ever repay the long term debt on their books.
Media Sentiment
22 Apr 15 08:57:31
$BZH received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 309
Market Int Center
22 Apr 15 08:52:12
Beazer Homes USA $BZH Showing Bullish Technicals ( http://t.co/seSpDCGovk )
Grant Dossetto
22 Apr 15 08:43:24
@chet1970 @DividendMaster @thirdgenwidget The company that I am keen to see report is $BZH. Wholly unable to survive declining GM.
Alan Farley
22 Apr 15 06:42:33
My Latest @Investopedia - Analyze Relative Strength On Your Trading Strategy $SPY $QQQ $ITB $BZH $GM $F http://t.co/Yi8OGMkNRp
Clark Joseph Kent
21 Apr 15 20:51:37
MKM pairs trade: Buy REITs, sell homebuilders $BZH $LEN $LPX $TMHC $TOL $TPH $AVB $CCI $ESS $EXR $FRT $GGP $SLG $UDR http://t.co/zJZ7v3Fn3X
clayton
21 Apr 15 19:39:20
BZH 18.49 Beazer Homes USA $BZH added to my watch list. Right now with BZH I am watching the last price 18.49 http://t.co/VQJpReiUr3
clayton
21 Apr 15 19:38:58
$BZH BZH 18.49 Beazer Homes USA $BZH stock added to my watch list. Right now with BZH I am watching the last price http://t.co/u6vE3y3eah
REIT Stocks In 2015
21 Apr 15 13:48:14
Commented on: "MKM pairs trade: Buy the REITs, sell the homebuilders" http://t.co/glBxCabWCe $BZH $LEN $LPX $TMHC
Financial Stocks
21 Apr 15 12:54:50
MKM pairs trade: Buy the REITs, sell the homebuilders http://t.co/58sSwSOht1 $BZH $LEN $LPX $TMHC
				
				
By  +Follow August 1, 2013 8:16AM
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