Shares of Beazer Homes (NYSE:BZH) slid by more than 6% to a 52-week low on Tuesday after the homebuilder widened its second-quarter loss and said closings on new homes declined during the period as incentives diminished.
While total new orders climbed 24% to 1,215 homes, home closings decreased 49% due to a lower backlog of homes and the absence of incentives.
The Atlanta-based company posted a net loss of $59.12 million, or 80 cents a share, compared with a year-ago loss of $27.8 million, or 41 cents a share, in the same quarter last year.
Excluding special items, the company lost 75 cents, widely missing average analyst estimates polled by Thomson Reuters of a 42-cent loss.
Revenue for the three months ended June 30 was $172.83 million, down from $321.8 million a year ago, missing the Streets view of $232 million.
Despite the weaknesses, the company said its emphasis on promoting the low cost of ownership of a new Beazer Home compared with existing homes and other new homes was important to its efforts during the period.
Im pleased with our sales efforts during the third quarter, said Beazer CEO Allan Merrill Our sales team was able to overcome significant headwinds in both the economy and the housing market to record substantially improved orders.