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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $535.40

Homebuil mln

ding

Revenue

Q3 Miss $32.10 $38.10

Adjusted mln mln (5

EBITDA Analysts

)

Q3 13.5%

Homebuil

ding

Gross

Margin

Q3 15.2%

Homebuil

ding

Adj.

Gross

Margin

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 ( BZH ) 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:

(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.)