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BZH NYSE· Beazer Homes USA Inc
Earnings report Q4 2023

Beazer Homes USA Reports Decrease in Revenue for Latest Quarter

Segments of revenue

Beazer Homes USA reported total revenue of $386.8 million for the latest quarter, a decrease from $444.9 million in the same quarter of the previous year. This decline in revenue can be attributed to lower sales per community per month, which stood at 2.0 compared to 1.3 in the prior year quarter. However, net new orders showed a significant increase, reaching 823, up 70.7% from 482 in the prior year quarter.

Strengths

Despite the decrease in revenue, Beazer Homes USA demonstrated improvements in its homebuilding gross margin. The gross margin for the quarter ended December 31, 2023, was 19.9%, up from 19.2% in the prior year quarter. Excluding impairments, abandonments, and interest, the homebuilding gross margin increased to 22.9%, compared to 22.3% in the prior year quarter. This improvement can be attributed to a decrease in build costs, partially offset by an increase in price concessions and closing cost incentives.

Challenges

Beazer Homes USA faced challenges in managing its overhead costs, as reflected in the increase in SG&A as a percentage of total revenue. SG&A for the quarter ended December 31, 2023, was 14.3% of total revenue, up from 12.3% in the prior year quarter. This increase was primarily due to lower revenues compared to the previous year.

Noteworthy

Beazer Homes USA aims to achieve its long-term strategic business objectives, including increasing active communities to more than 200 by the end of fiscal 2026, reducing the net debt to net capitalization ratio to below 30% by the end of fiscal 2026, and reaching the target of 100% of home starts as Zero Energy Ready by the end of the calendar year 2025.

Summary

Beazer Homes USA reported a decrease in revenue for the latest quarter, primarily due to lower sales per community per month. However, the company showed improvements in its homebuilding gross margin, driven by a decrease in build costs. Beazer Homes USA aims to address challenges in managing overhead costs and remains focused on achieving its long-term strategic objectives.

Source documents

Form 10-Q  filed on Feb 01, 2024
125 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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