Beazer Homes USA (NYSE: BZH) stock surged 6.66% in pre-market trading on Friday, following the release of better-than-expected second-quarter earnings and the announcement of a significant share repurchase program.

The homebuilder reported adjusted earnings of $0.42 per share for the quarter ended March 31, significantly beating analysts' expectations of $0.27 per share. While this represents a decline from the $1.26 per share earned in the same quarter last year, it demonstrates resilience in a challenging market environment. Revenue also exceeded expectations, rising 4.4% year-over-year to $565.34 million, compared to the $541.84 million analysts had forecast.

Adding to investor enthusiasm, Beazer Homes announced a new $100 million share repurchase authorization, representing nearly 20% of the company's current market capitalization. This move signals management's confidence in the company's financial position and long-term prospects. CEO Allan Merrill emphasized the company's commitment to balancing growth, deleveraging, and increasing shareholder value through strategic capital allocation.

Despite ongoing challenges in the housing market, including affordability concerns and economic uncertainty, Beazer Homes' focus on energy-efficient homes and operational improvements appears to be resonating with investors. The company reported that its Zero Energy Ready homes have consistently delivered better margins than non-Zero Energy Ready homes, positioning it well in the competitive homebuilding landscape.