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Beazer flips to quarterly profit; shares jump

Ian McCarthy CEO of Beazer Homes USA Inc speaks at the Reuters Real Estate Summit in New York Reuters – Ian McCarthy, CEO of Beazer Homes USA Inc., speaks at the Reuters Real Estate Summit in New York, June …
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NEW YORK (Reuters) – Beazer Homes USA Inc (BZH.N) on Tuesday reported its first quarterly profit in more than a year, sending its shares up 8 percent in premarket trading.

Demand for the company's new homes was spurred by low prices and mortgage interest rates and a federal tax credit for first-time home buyers, Chief Executive Ian McCarthy said.

However, despite the profit and a 2.4 percent year-over-year increase in orders, McCarthy said rising unemployment and increased foreclosures make it difficult to say if the fragile housing market recovery is sustainable.

Atlanta-based Beazer, which has operations in 16 states, reported a profit of $34 million, or 84 cents per share, for its fiscal fourth quarter, ended September 30, compared with a year-earlier loss of $474 million, or $12.29 per share.

Revenue was $376.3 million, down from $650 million a year earlier.

Analysts had expected a loss of $1.24 per share, but Beazer adjusted its numbers in such a way that the estimate was not comparable.

Beazer shares stood at $5.08 in premarket trading, up from a Monday close of $4.69 on the New York Stock Exchange.

(Reporting by Helen Chernikoff; Editing by Derek Caney and John Wallace)