Beazer Homes USA ((BZH Quick QuoteBZH - Free Report) ) reported their June quarter results on August 1, delivering revenue of $595.68 million, up 4% over the same period last year and EPS (earnings per share) of just $0.88, compared to $1.24 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $599.12 million, representing a surprise of -0.57%, while EPS landed a positive surprise of +4.76% vs. the consensus estimate $0.84.

But analysts have since taken down their profit projections sharply. For the current fiscal year which ends in September, the Zacks EPS Consensus dropped from $4.64 to $4.37, representing a 15% annual decline. And next fiscal year (starts October) was trimmed over 10% from $5.28 to $4.72.

Part of the pessimism may be due to a couple of standard reporting metrics for the homebuilder that give visibility into their business demand.

The first is new home orders, net of cancellations. Beazer reported 1,070 versus 1,399 estimated by two analysts on average.

The second metric is Units in Backlog - Continuing Operations: 1,949 versus 2,258 estimated by two analysts on average.

It's also possible that analysts were influenced by the increase in recession worries after the so-called Sahm rule was triggered by rising unemployment data from last Friday.

Bottom line for Beazer Homes: BZH shares had a strong 27% rally in July as small-caps found their favor. The stock this week is bouncing off of support at $26 which goes back to April and November. Maybe there is value here, but investors should use caution until estimates stop going down. The Zacks Rank will let you know.