Beazer Homes registers Profit on the Back of Tax Benefit

Beazer Homes USA moved to and fro in its recently completed quarter profit due to tax benefit. It showed somewhat higher revenue and a decline in the cancellation rate. By the end of the quarter on Dec. 31, Beazer profited by $48 million or $1.17 a share, as compared with last year's loss of $80.3 million, or $2.08 a share. The tax benefit in the latest quarter equated to $2.24 a share, revenue rose 0.3% to $218.8 million.

Signs about the housing market have been mixed in recent months. West region led the orders which saw a 41% boost, while the east and southeast rose 36% and 23%, respectively. The "order growth is consistent with our outlook for the housing market to continue to stabilize into 2010", said Michael Rehaut, a home-building analyst with J. P. Morgan. "We are seeing indications that historically high levels of home affordability, home price stability, low mortgage interest rates and home buyer tax credits may be beginning to balance out prospective home buyers", said Chairman and Chief Executive Ian McCarthy.

According to the Commerce Department construction of new homes fell down by 4% but applications for new building permits rose 11% in December. On the back of tax benefits, several home builders have gained the profit.