Shares of Beazer Homes (NYSE:BZH) fell Tuesday after the company said it swung to a second-quarter loss, hit by a sharp drop in new home orders on lacking incentives.
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The Atlanta-based homebuilder posted a net loss of $54.6 million, or 74 cents a share, compared with a profit of $5.3 million, or 11 cents a share, in the same quarter last year, short of average analyst estimates polled by Thomson Reuters of a 47-cent loss.
Revenue for the three months ended March 31 was $127.5 million, down from $192.5 million a year ago, widely missing the Street’s view of $149.39 million.
Total new orders fell 26.7% to 1,194 homes from the same period in 2010, partially offset by a 31% decrease in closings to 573 homes from the prior year.
“As expected, year-over-year comparisons were unfavorably impacted this quarter by the First Time Homebuyers’ Tax Credit which pulled forward sales volumes into the second quarter of 2010,” said Beazer CEO Ian McCarthy. “Throughout the downturn in the market, we have remained and will continue to be disciplined in our operations.”
The company said it continues to implement various cost cuts, including the elimination of 130 full-time positions that are expected to save Beazer more than $20 million annually.
In an effort to appeal to a broader range of consumers, the homebuilder launched last quarter its Pre-Owned Homes Division, beginning in the Phoenix market, that acquires, improves and rents out recently built, previously owned homes.