Beazer Homes' stock is experiencing a significant decline following the release of its first-quarter earnings report, which revealed earnings per share (EPS) of $0.10, falling short of the $0.31 anticipated by Wall Street analysts. Despite the earnings miss, the company reported revenues of $468.95 million, slightly surpassing the expected $464.42 million. The revenue growth was driven by a 22.1% increase in home closings, totaling 907 homes, and a 20.9% year-over-year rise in homebuilding revenue. Beazer's CEO, Allan P. Merrill, highlighted the company's progress in increasing its community count and lot position, despite the challenging new home sales environment.
Wedbush flagged the EPS miss as a key concern, contributing to the negative sentiment surrounding the stock. The market's reaction underscores the importance of meeting earnings expectations, even when revenue figures are strong. Beazer's liquidity position remains solid, with $335.4 million available, including $80.4 million in unrestricted cash.
Beazer Homes (BZH) shares have dropped 14.33% to $23.73 as of 10:31 am on January 31st, down from the previous close of $27.70.