Party Time: One Broker Just Made Major Increases To Their Beazer Homes USA, Inc. (NYSE:BZH) Earnings Forecast

Celebrations may be in order for Beazer Homes USA, Inc. (NYSE:BZH) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the latest upgrade, Beazer Homes USA's single analyst currently expects revenues in 2021 to be US$2.2b, approximately in line with the last 12 months. Statutory earnings per share are presumed to soar 53% to US$1.60. Before this latest update, the analyst had been forecasting revenues of US$1.9b and earnings per share (EPS) of US$1.27 in 2021. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

See our latest analysis for Beazer Homes USA

It will come as no surprise to learn that the analyst has increased their price target for Beazer Homes USA 18% to US$13.00 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.4%, a significant reduction from annual growth of 6.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.2% next year. It's pretty clear that Beazer Homes USA's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Beazer Homes USA could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Beazer Homes USA going out as far as 2022, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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