Beazer Homes Reports Decline in Earnings Amid Revenue Growth

Beazer Homes (BZH) experienced a significant drop in earnings for Q2, reporting $12.8M net income, down from $39.2M. Despite total revenues increasing to $565.3M, rising expenses overshadowed this growth. Investors should weigh these impacts carefully.

Date: 02-05-2025

AI Rating: 5

Earnings Per Share (EPS): Beazer Homes reported a decline in EPS, falling to $0.42 from $1.26 compared to the prior-year period. This substantial reduction is a significant concern for investors, indicating weakened profitability on a per-share basis, which could deter potential stock buyers.

Net Income: The net income of $12.8 million represents a significant decline from the previous year's $39.2 million. This sharp decline suggests operational challenges and could hurt investor confidence as it highlights potential inefficiencies or increased operational costs.

Revenue Growth: Total revenues increased to $565.3 million from $541.5 million, reflecting a positive trend driven by higher homebuilding activity. This growth should be seen positively; however, the higher revenues did not translate to increased profitability due to higher costs.

Profit Margins: The operating income fell sharply to $13.4 million from $36.0 million in the preceding year, indicating that profit margins are under pressure. Increased costs associated with home construction and land sales were not offset by the gains in revenue, leading to diminished margins. This could suggest further scrutiny of operational efficiency is needed.

Free Cash Flow (FCF) and Return on Equity (ROE): The report does not provide explicit information on free cash flow or return on equity, making it difficult to assess these critical financial metrics. This lack of available information limits a comprehensive evaluation of continuing investment viability.

Stocks: BZH