BZH - Beazer Homes fiscal Q4 earnings top consensus even as selling prices drop

Beazer Homes USA ( NYSE: BZH ) stock climbed 3.7% in Thursday after-hours trading as the homebuilder's fiscal Q4 earnings exceeded Wall Street expectations even as cancellation rates increased and average home selling prices dropped from the prior quarter.

Fiscal Q4 EPS from continuing operations of $2.82, topping the $2.06 consensus, increased from $1.76 in Q2 and from $1.57 in the year-ago quarter.

Revenue for the quarter ended Sept. 30, 2022, was $827.7M, beating the $718.6M consensus. That's up from $526.7M in Q3 and from $590.9M.

The average selling price for its houses was $510.7K, down from $528.8K in the previous quarter.

Cancellation rate for the quarter was 33% vs. 17% in the prior quarter and 12% in Q4 2021

Q4 net new orders decreased to 704, down from 925 in the prior quarter and down 34% Y/Y.

Backlog as of Sept. 30, 2022 was $1.1B, representing 2,091 homes, down from $1.6B, representing 3,003 homes at June 30, 2022.

Beazer ( BZH ) Chairman and CEO Allan P. Merrill said the company has increased incentives nd reduced base prices in most of its communities due as higher mortgage rates made homes less affordable. For the longer-term outlook, he remained confident that the company will grow as there's still a gap between structural demand for homes and the likely supply.

Conference call at 5:00 PM ET.

Earlier, Beazer Homes ( BZH ) GAAP EPS of $2.82 beats by $0.76, revenue of $827.67M beats by $109.12M

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