Orders Slide at Beazer

It guides to $10 to $10.50 a share in 2006.
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Beazer Homes USA

(BZH) - Get Report

swung to a second-quarter profit that missed estimates, and the homebuilder also reported sharply lower orders and issued guidance that could be perceived as soft.

Beazer earned $104.4 million, or $2.35 a share, in the quarter compared with a loss of $84.3 million, or $2.09 a share, including a big impairment charge, a year ago. On average, analysts surveyed by Thomson First Call were forecasting earnings of $2.27 a share in the company's latest quarter.

Revenue rose 30% from a year ago to $1.27 billion, about $100 million better than expected.

Beazer said new home orders slid 19% from a year ago to 4,224 in the second quarter. The company issued full-year earnings guidance of $10 to $10.50 a share, suggesting it could struggle to hit the existing Thomson First Call consensus of $10.48 a share.

"In a number of markets across the country, we have seen the pace of sales decline and price appreciation moderate relative to that experienced over the past several years, as evidenced by the lower net orders this quarter," Beazer said. "However, we continue to believe that the long-term industry fundamentals, including increased demand driven by demographic and employment trends coupled with further supply constraints in our major markets, remain compelling. Our broad geographic and product diversity, coupled with our commitment to profitable growth and the optimal allocation of capital, position us well in both the near and long term business environments."