Beazer Homes' stock is experiencing a significant decline following the release of its first-quarter earnings report, which fell short of analyst expectations. The Atlanta-based homebuilder reported an adjusted earnings per share (EPS) of just 10 cents, a steep drop from 70 cents per share in the same period last year, and well below the LSEG estimate of 31 cents. Despite a 13% year-over-year increase in new home orders to 932, the company's performance was overshadowed by challenges in key markets such as Texas and Florida. CEO Allan Merrill highlighted these regions as particularly difficult due to higher inventory levels, which have led to sluggish sales and necessitated more aggressive incentives.
While Beazer Homes managed to surpass revenue expectations with $469 million against a consensus of $463.5 million, the profit miss has raised concerns among investors. The company's struggles in certain markets have been a focal point, as Merrill noted during the earnings call that the sales environment remains challenging. Despite the current downturn, analysts remain optimistic about the company's long-term prospects, with three out of four analysts rating the stock as a "strong buy" and a median price target of $42.50.
Beazer Homes (BZH) shares have plummeted 18% to $22.715 as of 1:51 pm on Friday, down from a previous close of $27.7 on January 30th.