Beazer’s Bad Quarter (and My Weekend)

by

Beazer Homes (BZH 9.17%) took a tumble—11% by the time I checked Friday afternoon. It reminded me of trying to assemble flat-pack furniture after a particularly long flight. Everything’s slightly off, the instructions are useless, and you end up with extra screws. Except in this case, the screws are dollars, and the furniture is… well, houses. Their fiscal Q1 report wasn’t pretty.

Analysts were bracing for a loss of 50 cents a share, on sales of around $423 million. Beazer delivered a loss of $1.13, on sales of $363.5 million. Twice as bad as expected. It’s the kind of number that makes you question all your life choices, like that time I invested in artisanal dog biscuits. A complete disaster.

Beazer Q1 Earnings

The CEO, Allan Merrill, blamed “persistent demand challenges and elevated incentives.” Which, translated from corporate-speak, means nobody’s buying, and they’re having to bribe people with granite countertops. They closed 23% fewer homes. My aunt Mildred closed three bridge games last week, and even she’s doing better than that. Revenue was down 22%. It’s interesting, though. They didn’t drastically drop prices, which suggests they’re holding onto some semblance of pride, or maybe just hoping someone will come along and overpay. It’s a strategy I’ve employed with questionable antiques.

They’re aiming for “sequential margin improvements,” which sounds… optimistic. It’s like saying you’re going to climb Mount Everest one step at a time. Technically true, but still daunting. They want to hold the line on prices while cutting costs. I tried that with my grocery bill. It ended with a lot of ramen noodles.

And then there was the “litigation-related charge.” Another 23 cents shaved off per share. Apparently, building houses isn’t just about hammers and nails. It’s about lawyers. So many lawyers. It’s enough to make you consider a life of nomadic simplicity.

Loading widget...

Is Beazer Stock a Sell?

Merrill mentioned that national builders are slowing down, and mortgage rates are dipping. Apparently, a little bit of chaos is good for the market. It’s like a controlled demolition. Destructive, but potentially leading to something new. New orders were down 18%, which is bad, but not as bad as the home closings. Small victories, I suppose. I once found a matching pair of socks after a week-long search. It felt monumental.

They didn’t offer any full-year guidance, which is… convenient. Wall Street analysts are predicting a 25% drop in earnings. Things are expected to get worse before they get better. At a price-to-earnings ratio of 15, and with business still declining, it’s probably best to wait. Unless you enjoy the thrill of watching your money disappear. Some people do. They call it “investing.” I prefer a nice, safe savings account. And maybe a small collection of vintage thimbles.

Read More

2026-01-30 21:22