Atlanta, GA, January 19, 2006-- Beazer Homes USA Inc. reported quarterly earnings that rose 29 percent, as higher sales in the Southeast, Arizona and Colorado outstripped fewer closings in California and Nevada.
For the first quarter ended Dec. 31, Beazer earned $89.9 million, or $2 per share, up from $69.7 million, or $1.57 per share, a year earlier.
Analysts on average expected the Atlanta-based home builder to earn $1.97 per share.
Revenue, which the company does not recognize until the home is built--months after a contract is signed--rose 21.3 percent to $1.11 billion. Analysts expected $1.05 billion.
Home sales rose to $1.07 billion, while land sales soared to $30 million, up from $1.2 million a year earlier.
Lower demand helped slow sales in the superheated markets of Nevada and California. Permitting delays in Northern California, also snagged the openings of new developments, Atlanta-based Beazer said.
During the quarter, the company saw new orders rise to 3,872, up 9.2 percent with a value of $1.13 billion, up 11.3 percent.
"The market was a bit concerned about Beazer's new orders for the quarter," said Deutsche Bank analyst Gregg Schoenleber. "The fact that new order growth was up a little over nine percent is quite encouraging."
Higher orders in California and Colorado were offset by declines in Arizona and Nevada as demand slackened and new community openings were delayed.
Overall, Beazer saw new order growth in the Southeast, Central and Midwest regions, but experienced lower new home orders in both the West and Mid-Atlantic regions, where demand slowed and cancellations picked up in Virginia and Maryland.
Beazer, the sixth largest U.S. home builder, ended the quarter with a backlog of 9,276 homes under contract and awaiting construction, up 10.1 percent, while the value of the backlog rose 18 percent to $2.78 billion.
The company also reiterated its fiscal 2006 earnings forecast of $10.50 per share. Analysts expect Beazer to post fiscal 2006 earnings of $10.64 per share.
