February 29, 2024

Beazer Homes Posts Second-Quarter Loss

Beazer said its net loss amounted to 74 cents a share, in contrast to a net income of $5.3 million, or 9 cents a share, in the period a year earlier.

The current quarter included $17.9 million in charges related to further cuts in new home prices in Las Vegas and an increased amount of foreclosures.

The period a year earlier had a $52.9 million gain tied to the partial exchange of junior subordinated notes.

Analysts surveyed by FactSet forecast a loss of 50 cents a share for the latest quarter.

Revenue dropped 34 percent, to $127.5 million, from $192.5 million. This fell short of the $149.5 million in revenue that Wall Street expected.

New orders dropped 26.7 percent, to 1,194 homes, while closings fell 31.1 percent, to 573 homes.

Beazer said its results were hurt in part because of the absence of the first-time homebuyers’ tax credit, which prompted some buyers to make purchases in the period a year ago.

But the company said orders were better in the second quarter than the first quarter.

“We are hopeful that the latest improvements in employment will help lift consumer confidence in the coming quarters, which is necessary for any significant recovery in housing to occur,” Ian McCarthy, the chief executive, said in a statement.

In adapting to current market conditions, Beazer announced last month that it had created a new division to buy, upgrade and rent previously owned homes to consumers who are not ready to purchase a house or who could not qualify for a mortgage.

Beazer, which has worked on lowering construction costs and overhead expenses and tightening land acquisition and development spending, also expects to eliminate about 130 full-time jobs. The cuts are also expected to lead to about $3 million in third-quarter charges tied to severance and lease abandonment.

Shares of Beazer fell 23 cents, or 5 percent, to $4.33.

Article source: http://feeds.nytimes.com/click.phdo?i=31c1290c18d149bbe5a9402e2d7adc77

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