Beazer Homes USA Inc. (BZH) stock experienced a significant plummet of 13.72% in the pre-market trading session on Friday, January 31, 2025, following the release of the homebuilder's fiscal first-quarter results and a gloomy outlook for the housing market.

In the quarter ended December 31st, Beazer Homes reported a net profit of $3.1 million, or $0.10 per share, significantly lower than the $21.7 million, or $0.31 per share, reported a year ago. The company's earnings widely missed analysts' consensus estimate of $0.31 per share, despite a 21% year-over-year increase in revenue to $469 million, which exceeded expectations.

The company's CEO, Allan Merrill, cited a challenging new home sales environment, particularly in markets like Texas and Florida, where higher inventory levels led to sluggish sales and more aggressive incentives. Analysts express concern about the weak outlook for the housing market, which likely contributed to the stock's sharp decline.