Beazer Homes USA Inc . (NYSE:BZH) stock soared to a 52-week high, reaching $36.69, as the home construction company benefited from a buoyant housing market. This peak represents a significant milestone for the company, reflecting a robust 1-year change of 4.79%. Investors have shown increased confidence in Beazer Homes, as the stock's upward trajectory signals a strong performance amidst fluctuating market conditions. The company's ability to achieve this level despite the challenges faced by the housing sector underscores its resilience and the effectiveness of its strategic initiatives.
In other recent news, Beazer Homes USA, Inc. reported impressive fourth quarter results, exceeding analyst expectations with earnings per share of $1.69 and revenue of $783.8 million. The company delivered 1,496 homes in Q4, a 21.3% increase year-over-year, and saw a slight increase in average selling price to $523,900. Despite these positive developments, the gross margin fell to 17.2% due to rising costs and incentives.
CEO Allan P. Merrill noted strong results for the quarter and the year, with October sales growing over 30% year-over-year, driven by a higher community count and improved sales pace. Looking ahead, Beazer anticipates further expansion of community count to spur revenue growth and double-digit return on capital employed by fiscal 2025.
Meanwhile, net new orders rose 2.6% to 1,029 homes in Q4, although the cancellation rate also increased to 21.9%. The company's backlog stood at 1,482 homes valued at $797.2 million at the end of September. Beazer maintained a robust liquidity position with $503.9 million available at quarter-end, including $203.9 million in cash.
InvestingPro Insights
Beazer Homes USA Inc.'s (BZH) recent stock performance aligns with several key metrics and insights from InvestingPro. The company's P/E ratio of 6.67 suggests it's trading at a relatively low earnings multiple, which could be attractive to value investors. This is particularly noteworthy given the stock's strong return over the last three months, with a price total return of 15.09%.
InvestingPro Tips highlight that BZH is trading near its 52-week high, corroborating the article's mention of the stock reaching $36.69. Additionally, the company has been profitable over the last twelve months, with analysts predicting continued profitability this year. These factors may contribute to the increased investor confidence noted in the article.
However, it's important to note that BZH operates with a significant debt burden, which could pose challenges in a fluctuating housing market. Investors should also be aware that the stock price movements are quite volatile, which aligns with the dynamic nature of the housing sector.
For a more comprehensive analysis, InvestingPro offers 12 additional tips for BZH, providing deeper insights into the company's financial health and market position.
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