NYSE$BZH

Beazer Homes USA Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Beazer Homes' financial performance improved in the second quarter, driven by higher home prices and margins, despite ongoing supply chain issues.

Beazer Homes reported strong second quarter fiscal 2022 results, with net income from continuing operations increasing to $44.7 million, or $1.45 per diluted share. The company experienced a decrease in homebuilding revenue due to lower home closings, but this was partially offset by an increase in average selling prices. Homebuilding gross margin improved significantly, and the company continued to expand its lot position and reduce leverage.

  • Net income from continuing operations increased to $44.7 million, or $1.45 per diluted share.
  • Homebuilding revenue decreased by 7.3% to $507.2 million due to a decline in home closings.
  • Homebuilding gross margin improved to 23.5%, up 570 basis points.
  • Net new orders decreased by 30.4% to 1,291, influenced by a decrease in average community count and orders per community.

Headline financials

Total Revenue

$509M

Previous: $550M-7.5%
EPS (adj)

$1.45

Previous: $0.81+79.0%
Average Selling Price from Closings

$471K

Previous: $394K+19.3%
Adjusted EBITDA

$77.4M

No prior period
Homebuilding Gross Margin

23.5%

Previous: 17.8%+32.0%
Controlled Lots

23.5K

No prior period
Capital Expenditures

-$6.2M

Previous: -$6.51M+4.9%
Free Cash Flow

$38.5M

Previous: $18M+113.6%
Net Income

$44.7M

Previous: $24.5M+82.1%
Operating Income

$54.6M

Previous: $33.6M+62.4%
Gross Profit

$120M

Previous: $97.9M+22.3%
Cash & Equivalents

$197M

Previous: $356M-44.5%
Total Assets

$2.16B

Previous: $2.06B+5.1%
Stock-Based Comp

$2.42M

Previous: $2.55M-4.9%

Revenue & EPS history

Beazer Homes · Revenue · Quarterly

$509M

Q2 2022-7.5%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Beazer Homes · $573M total across 2 segments · Q3 2023

  • Homebuilding Revenue
    $571M+9.0%
  • Land Sales and Other
    $2.01M-41.5%

Forward guidance

Beazer Homes expects future periods to present a more challenging sales environment due to worsening home affordability. However, with the size of their backlog, they have excellent visibility into full year financial results and now expect to generate fiscal year 2022 earnings per share of at least $6.00, inclusive of previously disclosed tax benefits of approximately $0.40 per share. They also expect to reduce debt below $1 billion by year end, even as they further expand their active lot position.

Tailwinds

  • Excellent visibility into full year financial results due to the size of the backlog.
  • Expects to generate fiscal year 2022 earnings per share of at least $6.00, inclusive of previously disclosed tax benefits of approximately $0.40 per share.
  • Anticipates reducing debt below $1 billion by year end.
  • Plans to further expand active lot position.
  • Confident in the multi-year growth of their business and the new home industry.

Headwinds

  • Expects future periods to present a more challenging sales environment.
  • Worsening home affordability due to increases in both home prices and mortgage rates.
  • Supply chain challenges are expected to continue to impact the level of housing starts and construction cycle times.
  • New home orders have not been significantly impacted to date, but expect future periods to present a more challenging sales environment.
  • Fundamental disconnect between the demand for homes and the likely supply of homes remains in place.

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 Q2 2022

Historical avgQ2 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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