Earnings Preview: Beazer Homes To Post 4Q Results

ALEX VEIGA

LOS ANGELES (AP) — Homebuilder Beazer Homes USA Inc. reports earnings for its fiscal fourth quarter on Tuesday. The following is a summary of key developments in the period.

OVERVIEW: Atlanta-based Beazer has operations in 16 states and was ranked the ninth-biggest homebuilder of 2008 by Builder magazine.

The company is expected to report a quarterly loss for the three months ended Sept. 30, reflecting the dampening effect that the economy, weak consumer confidence and mounting competition from foreclosed homes continues to have on new home sales.

Like other builders, Beazer has seen new home orders improve this year, thanks in part to low mortgage rates and a tax credit of up to $8,000 for first-time homebuyers that was scheduled to expire at the end of this month.

The incentive helped to spur traffic for builders toward the end of the summer, but its impact began to wane by September as it became less likely buyers could close a deal in time to qualify for the credit.

As a result, new home sales in September dropped 3.6 percent nationwide — the first decline since March.