- Beazer Homes (BZH +7.2%) reported Q2 revenue growth of 7% Y/Y to $455.18M.
- Homebuilding revenue +4.6% Y/Y to $441.1M, with home closing +2.2% Y/Y to 1,266 and average selling price +2.3% Y/Y to $348.4k. Gross margin improved 90 bps to 16.9%.
- Land sales and others revenue +74% Y/Y to $14.06M; gross margin improved by 300 bps to 5.06%.
- Q2 overall operating margin was up by 127 bps to 3.04% and Adj. EBITDA margin up 88 bps to 8.7%.
- SG&A margin down 50 bps to 12.8%
- New home orders +8.4% Y/Y to 1,679 and cancellation rate was down 170 bps to 14.9%.
- Backlog was up 15% Y/Y to $885.4M.
- Total inventory was at $1.67B as of 31 March 2018.
- Q3 2018 outlook: New home orders and closings relatively flat; Backlog conversion ~60%; Average selling price ~$370k; Homebuilding gross margin ~21%; SG&A as % of revenue will be down, Adj. EBITDA and Land spend are expected to increase.
- Previously: Beazer Homes beats by $0.21, beats on revenue (May 2)
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