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Mar 31, 2022
Beazer Homes Q2 2022 Earnings Report
Beazer Homes' financial performance improved in the second quarter, driven by higher home prices and margins, despite ongoing supply chain issues.
Key Takeaways
Beazer Homes reported strong second quarter fiscal 2022 results, with net income from continuing operations increasing to $44.7 million, or $1.45 per diluted share. The company experienced a decrease in homebuilding revenue due to lower home closings, but this was partially offset by an increase in average selling prices. Homebuilding gross margin improved significantly, and the company continued to expand its lot position and reduce leverage.
Net income from continuing operations increased to $44.7 million, or $1.45 per diluted share.
Homebuilding revenue decreased by 7.3% to $507.2 million due to a decline in home closings.
Homebuilding gross margin improved to 23.5%, up 570 basis points.
Net new orders decreased by 30.4% to 1,291, influenced by a decrease in average community count and orders per community.
Revenue by Geographic Location
Forward Guidance
Beazer Homes expects future periods to present a more challenging sales environment due to worsening home affordability. However, with the size of their backlog, they have excellent visibility into full year financial results and now expect to generate fiscal year 2022 earnings per share of at least $6.00, inclusive of previously disclosed tax benefits of approximately $0.40 per share. They also expect to reduce debt below $1 billion by year end, even as they further expand their active lot position.
Positive Outlook
- Excellent visibility into full year financial results due to the size of the backlog.
- Expects to generate fiscal year 2022 earnings per share of at least $6.00, inclusive of previously disclosed tax benefits of approximately $0.40 per share.
- Anticipates reducing debt below $1 billion by year end.
- Plans to further expand active lot position.
- Confident in the multi-year growth of their business and the new home industry.
Challenges Ahead
- Expects future periods to present a more challenging sales environment.
- Worsening home affordability due to increases in both home prices and mortgage rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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