Cybersecurity 'incident' dings Beazer Homes sales

By Claudia Assis

Beazer Homes misses sales, earnings estimates, and stock drops more than 4%

Beazer Homes USA Inc. said late Thursday that a cybersecurity "incident" delayed closings of some of its new homes at the end of last year.

Beazer Homes' stock (BZH) dropped more than 4% in the extended session Thursday after the builder reported fiscal first-quarter revenue of $387 million, which compares with revenue of $445 million in the year-ago quarter.

Analysts polled by FactSet expected revenue of $421 million for the period. The drop in total revenue included a 14% year-over-year decline in homebuilding revenue.

Beazer earned $21.7 million, or 70 cents a share, in the quarter, compared with $24.3 million, or 80 cents a share, in the fiscal first quarter of 2023. FactSet consensus called for EPS of 71 cents a share for the quarter.

Beazer said net new orders grew "significantly" as compared with the previous year. "With a large backlog, improving cycle times and community count growth, we're on track to meet our growth and profitability goals for the fiscal year," the company said.

The company did not provide details about the cybersecurity issue except to say that it happened at the end of December and affected one of its title-insurer providers.

"Although the delayed closings led to slightly lower revenue and earnings in the quarter, I'm pleased to report that these delayed closings were all completed during the first two weeks of January and that the title-insurance provider has returned to normal operations," Chief Executive Allan P. Merrill said in a statement.

Shares of Beazer Homes have soared 95% in the past 12 months, compared with an advance of around 20% for the S&P 500 index SPX.

-Claudia Assis

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02-01-24 1729ET

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