NYSE$BZH

Beazer Homes USA Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Beazer Homes' financial performance was strong, driven by increases in home prices and gross margin, despite supply chain challenges.

Beazer Homes reported strong Q3 financial results with net income of $54.3 million, or $1.76 per diluted share. Homebuilding revenue was $523.2 million, and the homebuilding gross margin was 25.1%. The company expects fiscal year 2022 earnings per share of approximately $6.50 and to reduce debt below $1 billion by year end.

  • Net income from continuing operations was $54.3 million, or $1.76 per diluted share, compared to $37.1 million, or $1.22 per diluted share, in Q3 2021.
  • Homebuilding revenue was $523.2 million, down 7.7% year-over-year.
  • Homebuilding gross margin was 25.1%, up 490 basis points.
  • Net new orders were 925, down 22.9% year-over-year.

Headline financials

Total Revenue

$527M

Previous: $571M-7.8%
EPS (adj)

$1.76

Previous: $1.22+44.3%
Average Selling Price from Closings

$502K

Previous: $411K+21.9%
Adjusted EBITDA

$88.2M

No prior period
Homebuilding Gross Margin

25.1%

Previous: 20.2%+24.3%
Controlled Lots

24.9K

No prior period
Capital Expenditures

-$11.2M

Previous: -$10.3M-8.5%
Free Cash Flow

$43.1M

Previous: $26.8M+60.8%
Net Income

$54.3M

Previous: $37.1M+46.3%
Operating Income

$67.2M

Previous: $48.7M+38.1%
Gross Profit

$132M

Previous: $116M+14.7%
Cash & Equivalents

$81.8M

Previous: $358M-77.2%
Total Assets

$2.22B

Previous: $2.09B+6.0%
Stock-Based Comp

$1.98M

Previous: $3.19M-37.9%

Revenue & EPS history

Beazer Homes · Revenue · Quarterly

$527M

Q3 2022-7.8%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Beazer Homes · $527M total across 2 segments · Q3 2022

  • Homebuilding Revenue
    $523M-7.7%
  • Land Sales and Other
    $3.44M-14.1%

Forward guidance

Beazer Homes expects to generate fiscal year 2022 earnings per share of approximately $6.50, inclusive of previously disclosed tax benefits of approximately $0.40 per share, and reduce debt below $1 billion by year end.

Tailwinds

  • Size of backlog provides excellent visibility into full year financial results.
  • Company expects to generate fiscal year 2022 earnings per share of approximately $6.50.
  • Company anticipates reducing debt below $1 billion by year end.
  • Structural demand for new homes remains quite strong.
  • Company remains confident in the long-term prospects of the business and the new home industry.

Headwinds

  • Environment for new home sales became significantly more challenging during Q3.
  • Higher mortgage rates and rapid inflation negatively impacted homebuyer sentiment and behavior.
  • Many prospective customers are delaying purchase decisions.
  • Near-term pressures on new home sales.
  • Consumers will adjust to a higher rate environment.

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 Q3 2022

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro