NYSE$BZH

Beazer Homes USA Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported strong first quarter results driven by significant gains in operating margin and adjusted EBITDA.

Beazer Homes reported a strong first quarter with net income more than doubling compared to the prior year. The company's performance was driven by gains in operating margin and adjusted EBITDA. They expect full-year results to exceed the previously communicated target of $5.00 EPS.

  • Net income from continuing operations was $34.9 million, or $1.14 per diluted share, compared to $12.0 million, or $0.40 per diluted share, in fiscal first quarter 2021.
  • Adjusted EBITDA of $61.1 million, up 40.1%.
  • Homebuilding revenue of $446.7 million, up 5.3% on a 15.1% increase in average selling price to $438.4 thousand, partially offset by a 8.5% decrease in home closings to 1,019.
  • Homebuilding gross margin was 20.9%, up 330 basis points.

Headline financials

Total Revenue

$454M

Previous: $429M+6.0%
EPS (adj)

$1.14

Previous: $0.40+185.0%
Total Home Closings

1.0K

No prior period
Average Selling Price from Closings

$438K

Previous: $381K+15.1%
Homebuilding Gross Margin

20.9%

Previous: 17.6%+18.7%
Capital Expenditures

-$2.89M

Previous: -$2.95M+2.0%
Free Cash Flow

$32M

Previous: $9.04M+253.7%
Net Income

$34.9M

Previous: $12M+190.8%
Operating Income

$40.9M

Previous: $17.7M+131.5%
Gross Profit

$97.4M

Previous: $75.3M+29.4%
Cash & Equivalents

$187M

Previous: $245M-23.6%
Total Assets

$2.06B

Previous: $1.98B+3.8%
Stock-Based Comp

$2.11M

Previous: $3.51M-40.0%

Revenue & EPS history

Beazer Homes · Revenue · Quarterly

$454M

Q1 2022+6%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Beazer Homes · $454M total across 2 segments · Q1 2022

  • Homebuilding Revenue
    $447M+5.3%
  • Land Sales and Other
    $7.42M+72.2%

Forward guidance

The new home market continues to be characterized by strong demand and limited supply, supported by growth in both employment and wages. Given this backdrop, the strength in our first quarter results and the visibility we have into our backlog, we are confident our full-year results will exceed our previously communicated target of $5.00 despite continuing industry-wide challenges in labor and material availability. Incrementally, we plan to realize full-year energy efficiency tax credits which should add about $0.40 to earnings. We also expect further growth in our active lot position as we achieve our multi-year goal of reducing total debt below $1 billion during the fiscal year.

Tailwinds

  • Strong demand in the new home market.
  • Limited supply supporting market conditions.
  • Growth in employment and wages boosting demand.
  • Expect full-year results to exceed the previously communicated target of $5.00 EPS.
  • Plan to realize full-year energy efficiency tax credits, adding about $0.40 to earnings.

Headwinds

  • Continuing industry-wide challenges in labor availability.
  • Continuing industry-wide challenges in material availability.
  • Potential negative impacts of the COVID-19 pandemic
  • Increases in mortgage interest rates
  • Increased competition or delays in reacting to changing consumer preferences in home design

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.6%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+3.1%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+27.0%

Q2 2023

Best reaction

-20.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-3.9%-12.4%+17.0%
Q1 2026-10.9%+1.4%+5.7%
Q4 2025+1.7%-7.4%+5.5%
Q2 2025+8.6%+7.6%+5.1%
Q1 2025-20.0%-20.9%-19.5%
Q4 2024+8.0%+1.8%-4.2%
Q3 2024-15.1%-18.9%-7.1%
Q2 2024-3.6%+1.1%+2.5%
Q1 2024-6.1%-8.3%+1.5%
Q4 2023-10.9%-12.1%+3.0%
Q3 2023+26.6%+23.1%-1.6%
Q2 2023+27.0%+12.1%+24.1%
Q1 2023-7.1%-5.7%-6.5%
Q4 2022+18.1%+14.6%+21.7%
Q3 2022-3.7%-6.7%-4.3%
Q2 2022+2.0%+4.9%+8.2%
Q1 2022-3.1%-1.9%-10.5%
Q4 2021+10.6%+10.3%+20.7%
Q3 2021+4.5%+0.9%+8.6%
Q2 2021+4.3%+15.8%+11.3%
Q1 2021-10.2%-4.1%-4.5%
Q4 2020+3.3%+0.4%+8.0%
Q3 2020-1.7%-1.6%+11.0%
Q2 2020-3.2%-2.2%+35.8%
Q1 2020-17.2%-22.4%-26.2%
Q4 2019+8.4%+8.5%+6.7%
Q3 2019-2.4%-3.7%+6.9%
Q2 2019-8.1%-20.0%-33.3%
Q1 2019-2.7%-11.2%-9.8%
Q4 2018+22.6%+23.1%+28.4%
Q3 2018-5.0%-3.5%-4.7%
Q2 2018+5.6%+8.4%-0.7%
Q1 2018+0.4%-12.4%-5.9%
Q4 2017+3.2%-1.7%-10.0%
Q3 2017+13.1%+16.5%+12.4%
Q2 2017+8.5%+20.1%+4.5%
Q1 2017-6.8%-6.4%-14.1%
Q4 2016+4.7%+13.5%+18.3%
Q3 2016+4.1%+1.0%+15.6%
Q2 2016-17.1%
Q1 2016-17.7%
Q4 2015+9.8%
Q3 2015-10.4%
Q2 2015+2.8%
Q1 2015-16.7%
Q4 2014-3.0%
Q3 2014-6.0%
Q2 2014+5.2%
Q1 2014-2.0%
Q4 2013+5.9%
Q3 2013-1.0%
Q2 2013+15.2%
Q1 2013+2.7%
Q4 2012-16.6%
Q3 2012+5.6%
Q2 2012-12.6%
Q1 2010+13.6%
Q1 2012+2.4%
Q4 2011-2.7%
Q3 2011-16.5%
Q3 2010-16.5%
Q2 2011-1.7%
Q4 2010+7.4%
Q2 2010-11.6%

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