Beazer Homes (BZH) to Report Q3 Earnings: What's in the Cards?
Beazer Homes USA, Inc. BZH is set to report third-quarter fiscal 2023 (ended Jun 30) results on Jul 27 after market close.
In the last reported quarter, the company’s earnings and total revenues topped the Zacks Consensus Estimate by 34.5% and 4.1%, respectively. Earnings declined 22.1% but revenues increased 7% on a year-over-year basis.
Beazer Homes’ earnings topped the consensus mark in all the trailing 13 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share remained unchanged at 88 cents over the past 60 days. The estimated figure indicates a 50% decline from the year-ago quarter’s reported value of $1.76 per share.
Beazer Homes USA, Inc. Price and EPS Surprise
Beazer Homes USA, Inc. price-eps-surprise | Beazer Homes USA, Inc. Quote
For total revenues, the consensus mark is pegged at $513.3 million, suggesting a decline of 2.5% from the year-ago quarter’s reported figure of $526.7 million.
Let's check out the factors that are likely to have influenced the quarter.
Key Factors at Play
Beazer Homes’ total revenues, which include Homebuilding revenues (accounted for 99.4% of total revenues in fiscal 2022), and Land sales and other revenues, are likely to have declined on a year-over-year basis in third-quarter fiscal 2023. Lower consumer spending due to high mortgage rates and uncertain economic environment are likely to have weighed on the results. Consumers have become more selective and price conscious, reflecting the comparatively lower spending on a year-over-year basis.
For third quarter fiscal 2023, the Zacks Consensus Estimate for Homebuilding revenues is pegged at $512 million, down 2.1% while Land sales and other revenues is pegged at $3.5 million, up 1.7%, year over year.
Owing to the aforementioned risks, the company expects total home closings to be approximately 1,000 units in the fiscal third quarter, down from the prior year quarter’s value of 1,043 units.
BZH anticipates the average selling price (ASP) from closings to be approximately $510,000, up from $501,700 reported in the prior year period.
The consensus mark for total home closings and ASP are pegged at 1,003 units and $510,000, respectively, on a year-over-year basis.
Meanwhile, the bottom line is likely to have been affected by the persisting inflation, increased incentive expenses and high costs.
For the fiscal third quarter, the consensus mark for Homebuilding as well as Land sales and other gross profits are pegged at $95 million and $0.7 million, down 27.8% and 22.2%, respectively from the prior year quarter’s reported value.
Furthermore, for the quarter, the consensus mark for backlog units is pegged at 1,953 units, down 35% year over year.
Nonetheless, the company’s strategic operating initiatives, wage growth, moderating home prices and decreasing cycle times are likely to have offset the risks to some extent.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Beazer Homes for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: BZH has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently sports a Zacks Rank of 1.
Stocks With the Favorable Combination
Here are some other companies in the Zacks Construction sector, which according to our model, also have the right combination of elements to post an earnings beat for their respective quarters to be reported.
Boise Cascade Company BCC has an Earnings ESP of +2.36% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
BCC’s earnings for the to-be-reported quarter are expected to decline 53.7%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 19%.
Owens Corning OC has an Earnings ESP of +2.10% and sports a Zacks Rank of 1.
OC’s earnings for the to-be-reported quarter are expected to decline 13.8%. The company reported better-than-expected earnings in the last four quarters, the average surprise being 15.1%.
Vulcan Materials Company VMC has an Earnings ESP of +2.22% and a Zacks Rank of 3.
VMC is expected to register a 24.8% increase in earnings for the to-be-reported quarter. Notably, the company reported better-than-expected earnings in two of the last four quarters and missed on the other two occasions, the average surprise being 7.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Vulcan Materials Company (VMC) : Free Stock Analysis Report
Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
Owens Corning Inc (OC) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
