Beazer Homes (BZH) Posts Q4 Profit On Early Debt Payment
BZH Hot Sheet
Revenue Growth %: +50.3%Financial Fact:
Home construction and land sales expenses: 170.28M
Today's EPS Names:
VSNT, CIM, KH, More
Beazer Homes USA Inc. (NYSE: BZH) showed a better than expected profit in the fourth quarter, due in large part to the prepayment of the company's debt.
Net income for the Atlanta-based homebuilder in the fourth quarter totaled $33.8 million, compared to the loss of $437.9 million in the same quarter last year.
Beazer homes reported fourth-quarter earnings of 87 cents per share, well ahead of the analyst estimate of a $1.24 loss. Revenue also beat the analyst consensus with $376.3 million in the fourth quarter, which compares to the estimate of $338.29 million and $649.8 million last year. The quarter included pre-tax charges of $29.9 million for inventory impairments and abandonment of land option contracts and pretax gains amounting to $89.3 million coming from the early extinguishment of debt.
"Following difficult market conditions throughout fiscal 2009, we were pleased to finish the year with a fourth quarter year-over-year increase in net new home orders from continuing operations, improved gross margins and a significant cash balance," said Ian J. McCarthy, President and CEO of Beazer Homes.
The cancellation rate for homes built by Beazer fell to 34.7 percent from 46.3 percent, while new home orders increased by 2.4 percent.
Beazer still points to the unemployment rate and rising foreclosures as obstacles blocking the company’s continued growth. The continued low interest rates and first-time homebuyer tax credit will assist Beazer in the immediate future.
Shares for Beazer have risen 7.68 percent in premarket trading to $5.05.
Net income for the Atlanta-based homebuilder in the fourth quarter totaled $33.8 million, compared to the loss of $437.9 million in the same quarter last year.
Beazer homes reported fourth-quarter earnings of 87 cents per share, well ahead of the analyst estimate of a $1.24 loss. Revenue also beat the analyst consensus with $376.3 million in the fourth quarter, which compares to the estimate of $338.29 million and $649.8 million last year. The quarter included pre-tax charges of $29.9 million for inventory impairments and abandonment of land option contracts and pretax gains amounting to $89.3 million coming from the early extinguishment of debt.
"Following difficult market conditions throughout fiscal 2009, we were pleased to finish the year with a fourth quarter year-over-year increase in net new home orders from continuing operations, improved gross margins and a significant cash balance," said Ian J. McCarthy, President and CEO of Beazer Homes.
The cancellation rate for homes built by Beazer fell to 34.7 percent from 46.3 percent, while new home orders increased by 2.4 percent.
Beazer still points to the unemployment rate and rising foreclosures as obstacles blocking the company’s continued growth. The continued low interest rates and first-time homebuyer tax credit will assist Beazer in the immediate future.
Shares for Beazer have risen 7.68 percent in premarket trading to $5.05.
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