Ariel Skelley / DigitalVision via Getty Images
The American Beazer House (NYSE:BZH) stock falls 7.6% Thursday after-hours trading after the homebuilder’s financial Q1 profit and sales both fell from a year ago as high mortgage rates hit new home sales.
“Toward At the end of the quarter, as mortgage rates fell slightly, we experienced improved in-person and online visits, which resulted in a significant increase in our new home orders in January,” said owner. President and CEO Allan P. Merrill said.
EPS Q1 is $0.80, which exceeded the median analyst estimate of $0.74, down from $1.14 in the previous quarter. Revenue of $444.9 million for the three months ended December 31, 2022, compared with $456.1 million by consensus, down from $454.15 million for the three months ended May 31 12 year 2021.
Net new orders fell 57.8% year-on-year to 1,141, as sales slowed 60.1% to 1.3 orders per community per month, down from 3.3 in in the same period last year. Additionally, the cancellation rate more than tripled to 37.1%, a sign that soaring mortgage rates have hit housing demand.
Homebuilder gross margin is 19.2% compared with 20.9% a year ago.
Adjusted EBITDA came in at $47.1 million, down 22.9% year-over-year.
Before that, Beazer Homes GAAP EPS of $0.8 beats $0.06.
