Affordable single-family home construction company LGI Homes (NASDAQ:LGIH) will be reporting results tomorrow before market open. Here’s what to expect.
LGI Homes beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $651.9 million, up 5.6% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ backlog estimates.
Is LGI Homes a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting LGI Homes’s revenue to grow 3% year on year to $626.4 million, slowing from the 24.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.18 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LGI Homes has missed Wall Street’s revenue estimates five times over the last two years.
Looking at LGI Homes’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Champion Homes delivered year-on-year revenue growth of 15.3%, beating analysts’ expectations by 9.2%, and Taylor Morrison Home reported revenues up 16.7%, topping estimates by 9.5%. Champion Homes traded up 13.5% following the results while Taylor Morrison Home was also up 2.6%.
Read our full analysis of Champion Homes’s results here and Taylor Morrison Home’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the home builders stocks have shown solid performance, the group has generally underpeformed, with share prices down 5.8% on average over the last month. LGI Homes is down 16.4% during the same time and is heading into earnings with an average analyst price target of $118.33 (compared to the current share price of $78.50).
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