Overview

• Beazer Homes fiscal Q3 net loss from continuing operations, adjusted EBITDA missed estimates

• Homebuilding revenue down 9.2% yr/yr, driven by decline in home closings

• Co repurchased $12.5 mln of outstanding common stock, reflecting strategic capital allocation

Outlook

• Beazer Homes aims for 200 active communities by fiscal 2027

• Company targets net debt to net capitalization ratio in low 30% range by 2027

• Beazer Homes expects double-digit growth in book value per share by 2027

• Company remains optimistic about growth opportunities in energy-efficient homes

Result Drivers

• COMMUNITY GROWTH - Double-digit growth in community count helped offset weaker sales pace, particularly in Texas

• GROSS MARGINS - Resilient gross margins supported results despite inventory impairment and abandonment charges

• SALES PACE - Weaker-than-expected sales pace impacted revenue, especially in Texas markets

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "hold."

• Wall Street's median 12-month price target for Beazer Homes USA Inc is $32.00, about 26.8% above its July 30 closing price of $23.42

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw9BvzsFa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)