The homebuilder recorded a second-quarter profit of 10 cents per diluted share, which includes noncash pretax charges of $10.2 million for inventory impairments. Not a bad quarter when compared to the year-earlier loss of $2.81 per share. Beazer's total revenue checked in at $198.2 million, up from $186.6 million in last year's second quarter.
The company also announced offerings of 12.5 million shares of common stock, 3 million tangible equity units, and $300 million of senior unsecured notes. These shares of common stock along with common equity units would represent a 22% increase to current shares outstanding, or 26% including the overallotment.
Although JPMorgan maintains a positive stance on the housing sector, early Tuesday trading indicates that investors don't feel the same way about BZH. At last check, the equity was about 10% lower in morning action. This put the stock just above the $6.00 region.
The good news is that the drop keeps the stock atop its 10-month moving average. Considering the fact that the 10-month trendline is in a descending pattern, the support of the sharply rising 10-week trendline could be far more important. This moving average is newfound support for BZH, as far as this year goes. However, the 10-week moving average provided support for a good portion of 2009. If the stock can weather the backlash of its earnings report and news of its stock offering, it should be able to return to its gaining ways thanks to the 10-week trendline.