Beazer Homes’ loss widened in its fiscal fourth quarter as the homebuilder dealt with a large loss on debt extinguishment. Orders of new homes increased, total home closings rose and its quarterly revenue topped analysts’ expectations.
The housing market is showing some signs of a sustained recovery. Last week a measure of U.S. home prices reported by real estate data provider CoreLogic climbed the most in six years. And low interest ratings are making it attractive for those that can afford purchases.
New home sales jumped last month to the highest annual pace in the past two and a half years. Sales of previously occupied homes dipped in September but have risen steadily in the past year.
For the three months ended Sept. 30, Beazer lost $66.2 million, or $2.82 per share. A year earlier the Atlanta company lost $43.2 million, or $2.91 per share. The per share amounts reflect for a 1-for-5 reverse stock split.
Loss from continuing operations was $2.57 per share in the latest quarter. Analysts polled by FactSet expected a loss of $1.82 per share.
The current quarter included a $42.4 million loss on debt extinguishment. There was no such loss in the year-ago period.
Beazer said Monday that new home orders climbed 10.3 percent, while total home closings increased 16.9 percent. The average sales price from closings rose slightly and the cancellation rates declined.
Revenue increased 11 percent to $370.9 million from $334.9 million.
This beat Wall Street’s forecast of $340.4 million.
For the year, Beazer Homes USA Inc. lost $145.3 million, or $7.87 per share. That compares with a loss of $204.9 million, or $13.84 per share, in the previous year. Annual revenue rose to $1.01 billion from $742.4 million.
Beazer offers homes in 16 states including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia.
Its stock fell $2.36, or 14.2 percent, to $14.28 in morning trading on Monday. For the year to date, its shares have risen 15 percent. They are still closer to their peak for the year of $20.15 set in mid-September.