Beazer Homes took its turn in the earnings parade today. And the reaction was positive. UBS's Susan Maklari said the Atlanta-based builder was "moving in the right direction" as its first quarter "outperformed expectations, as it made strides towards its longer term targets."
The builder posted better-than-expected profitability but missed on orders, according to Maklari. She added that it made progress on its capital structure as well, which sets it up for future growth.
"As such, we believe it remains on track to drive improved results over the next few years. More specifically, we'd note: the company continues to make progress towards its "2B-10" goal of $2 billion in revenues and a 10% EBITDA margin, which it expects to achieve in F2017; legacy assets will generate meaningful cash as they come in to production, allowing for lower debt levels and reduced interest expense over the next few years; and its exposure to the entry level, with ~60% of sales from this segment.