BZH - Beazer up 16% after Q3 reports show backlog reduction

2023-07-28 10:45:42 ET

Beazer Homes ( NYSE: BZH ) stock price climbed 16% after giving a Q3 top and bottom line estimates beat . Total revenue was reported at ~$572.54M, up 8.7% Y/Y, beating estimates by $60.28M. Out of which, homebuilding revenue was $570.5M, up 9% Y/Y. Homebuilding gross margin was 23.4% vs. 28.1% in the prior year quarter.

Backlog was reduced to $1B, representing 1,941 homes, compared to $1.6B representing 3,003 homes, at the same time last year.

Net new orders were 1,200, up 29.7% Y/Y, driven by a 28.3% increase in sales pace to 3.2 orders per community per month vs. 2.5 last year.

Net income from continuing operations of $43.8M, or EPS of $1.42 (beats consensus by $0.54) vs. $1.76 previous year. Adjusted EBITDA of $72.8M, down 17.5%.

Available liquidity at Q3 end includes $276.1M of unrestricted cash and $265M of remaining capacity under the unsecured revolving credit facility.

"Strong third quarter results were highlighted by an improved sales pace, higher backlog conversion, and lower sales concessions," said Allan P. Merrill, Chairman and CEO.

More on Beazer Homes:

• Beazer's Investors Should Be Cautious
• Beazer Homes USA: Revenue Increases Due To Higher Prices In Q2 2023
• Beazer gets a Buy rating from sell-side analyst, with an average target price of 33.67

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