Beazer Homes USA, Inc. Just Recorded A 36% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a sad week for Beazer Homes USA, Inc. (NYSE:BZH), who've watched their investment drop 17% to US$16.62 in the week since the company reported its quarterly result. Revenues were US$429m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.40, an impressive 36% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Beazer Homes USA

Following last week's earnings report, Beazer Homes USA's two analysts are forecasting 2021 revenues to be US$2.18b, approximately in line with the last 12 months. Per-share earnings are expected to grow 12% to US$2.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.03b and earnings per share (EPS) of US$2.00 in 2021. So it seems there's been a definite increase in optimism about Beazer Homes USA's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Beazer Homes USA 86% to US$20.50on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Beazer Homes USA's revenue growth will slow down substantially, with revenues next year expected to grow 1.8%, compared to a historical growth rate of 4.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.9% next year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Beazer Homes USA.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Beazer Homes USA following these results. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Beazer Homes USA going out as far as 2022, and you can see them free on our platform here.

Even so, be aware that Beazer Homes USA is showing 3 warning signs in our investment analysis , you should know about...

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