Beazer Homes USA, Inc. (BZH) experienced a sharp decline in its stock price on January 31, 2025, closing at $22.16, a significant 20% drop from the previous day's close of $27.70. The stock opened at $24.00 and fluctuated between a high of $24.61 and a low of $21.91, with an unusually high trading volume of 2,025,162 shares, over six times its average. This downturn was primarily driven by the company's disappointing first-quarter earnings report, which revealed an adjusted EPS of $0.10, far below the $0.31 expected by analysts and a steep decline from $0.70 in the same period last year. Despite a 13% y/y increase in new home orders and revenue slightly exceeding expectations at $469 million, the profit miss overshadowed these positives.
The earnings report highlighted challenges in key markets like Texas and Florida, where higher inventory levels led to sluggish sales and necessitated aggressive incentives. CEO Allan Merrill acknowledged these difficulties during the earnings call, noting that the sales environment remains challenging. Despite the current setback, analysts maintain a positive long-term outlook for Beazer Homes, with a median price target of $42.50.