By Denny Jacob
Beazer Homes USA shares rose 11% following fourth-quarter results and management commentary around its outlook.
Shares were trading around $35.49 on Thursday. The stock is on pace for its highest close since Sept. 18, 2008.
The single-family and multi-family home designer logged higher homebuilding revenue as homes closed in the quarter increased. Revenue grew to $806.2 million for the quarter ended Sept. 30 compared to $645.4 million, beating estimates of $775.4 million.
Chief Executive Allan Merrill said sales in October grew from a year earlier despite higher mortgage rates. He added that further expansion is expected in fiscal 2025.
"At a macro level, we do not expect significant reductions in mortgage rates over the balance of the fiscal year," Merrill said on an earnings call. "This is less optimistic than our view several months ago, but we're taking the movement in the bond market since September as a sign that mortgage rates may remain elevated."
The chief executive added that both the intermediate and long-term outlooks for new home sales remain very positive because of a deficit in housing supply and favorable demand demographics among customer segments it targets.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
November 14, 2024 12:21 ET (17:21 GMT)
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