LGIH Earnings Prediction
The chart below shows how LGIH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LGIH sees a +0.54% change in stock price 10 days leading up to the earnings, and a +1.57% change 10 days following the report. On the earnings day itself, the stock moves by +0.36%. This data can give you a slight idea of what to expect for the next quarter's release.
LGIH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
651.85M
5.56%
8.19%
Gross Margin
25.08%
-2.49%
0.16%
Operating Margin
12.32%
-7.51%
9.90%
Net Margin
10.67%
-1.75%
9.77%
EPS
2.95
3.87%
18.95%
No Data Available
LGIH Earnings Analysis
LGI Homes, Inc. Corporation (LGIH.O) Earnings Conference Call
Positive
Record Revenue Growth: 1. Record Revenue: LGI Homes reported revenue of $652 million in Q3 2024, a 5.6% increase year-over-year, marking the highest revenue since Q2 2022.
Average Sales Price Increase: 2. Increased Average Sales Price: The average sales price (ASP) reached a record high of $371,004, reflecting a 5.2% increase compared to the same period last year.
Community Expansion Milestone: 3. Community Count Growth: The company ended the quarter with 138 active communities, a 30% increase year-over-year, representing the largest absolute number of communities added in any single year.
Gross Margin Performance: 4. Strong Gross Margins: LGI Homes achieved an adjusted gross margin of 27.2%, up 20 basis points from the prior quarter and consistent with the prior year, demonstrating effective cost management and pricing strategies.
Earnings Per Share Growth: 5. Increased Earnings Per Share: Diluted earnings per share rose to $2.95, a 4% increase year-over-year and a 19% increase sequentially, highlighting strong profitability.
Negative
Cancellation Rate Concerns: 1. High Cancellation Rate: The company reported a cancellation rate of 26.2%, which is a significant concern as it indicates potential instability in customer demand and could impact future sales.
Rising Selling Expenses: 2. Increased Selling Expenses: Selling expenses rose to $55.2 million, accounting for 8.5% of revenue, up from 8.1% in the same period last year, reflecting higher advertising and personnel costs.
Sales Activity Slowdown: 3. Declining Absorption Rates: The average closings per community per month decreased to 4.4, down approximately 33% from 2022, indicating a slowdown in sales activity.
Debt Management Concerns: 4. Debt Levels: The company ended the quarter with $1.5 billion in debt, resulting in a debt-to-capital ratio of 43.6%, which raises concerns about financial leverage and risk.
Revised Home Sales Outlook: 5. Lowered Full-Year Guidance: The company expects to close between 6,100 and 6,400 homes this year, which is a downward adjustment from previous expectations, reflecting challenges in the current market environment.
LGIH FAQs
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LGIH Earning Call Sentiment
LGI Homes, Inc. (LGIH) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
LGIH.O
1.76%Positive
The earnings call summary presents a generally positive outlook, with record-high revenue, increased ASP, and improved gross margins. Despite regulatory and supply chain challenges, the company shows resilience in maintaining margins and demand, as highlighted in the Q&A. Raised guidance for ASP and gross margin further supports positive sentiment. However, lack of shareholder return plans and affordability concerns might temper enthusiasm slightly. Considering the market cap of approximately $2.1 billion, the stock is likely to experience a positive price movement (2% to 8%) over the next two weeks.
