NASDAQ$LGIH

LGI Homes Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

LGI Homes reported record first quarter results driven by increased home closings and average sales price.

LGI Homes announced record first quarter 2021 results, with net income increasing by 132.6% to $99.7 million. Home sales revenues rose by 55.2% to $706.0 million, driven by a 39.6% increase in home closings and an 11.2% increase in the average sales price per home closed. The company is updating full year guidance.

  • Net income increased 132.6% to $99.7 million, or $3.95 diluted EPS.
  • Home sales revenues increased 55.2% to $706.0 million.
  • Home closings increased 39.6% to 2,561 homes.
  • Ending backlog of 5,632 homes, representing $1.6 billion.

Headline financials

Total Revenue

$706M

Previous: $455M+55.2%
EPS (adj)

$3.95

Previous: $1.67+136.5%
Total Home Closings

2.6K

Previous: 1.8K+39.6%
Average Sales Price per Home Closed

$276K

Previous: $248K+11.2%
Ending Backlog Homes

5.6K

No prior period
Ending Backlog Value

$1.6B

No prior period
Free Cash Flow

$99.7M

Previous: $42.8M+132.6%
Net Income

$99.7M

Previous: $42.8M+132.6%
Operating Income

$122M

Previous: $53.9M+127.3%
Gross Profit

$190M

Previous: $107M+78.2%
Cash & Equivalents

$48.2M

Previous: $118M-59.2%
Total Assets

$1.83B

Previous: $1.72B+6.2%
Stock-Based Comp

$3.42M

Previous: $1.85M+84.7%

Revenue & EPS history

LGI Homes · Revenue · Quarterly

$706M

Q1 2021+55.2%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The Company is providing the following updates to its guidance for the full year 2021. The Company believes home closings between 9,700 and 10,300, active selling communities at the end of 2021 between 112 and 120, gross margin as a percentage of home sales revenues between 24.7% to 26.7%, adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 26.5% and 28.5% with capitalized interest accounting for substantially all the difference between gross margin and adjusted gross margin, average sales price per home closed between $275,000 and $285,000 and SG&A as a percentage of home sales revenues between 9.5% and 10.0%.

Tailwinds

  • Home closings between 9,700 and 10,300
  • Active selling communities at the end of 2021 between 112 and 120
  • Gross margin as a percentage of home sales revenues between 24.7% to 26.7%
  • Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 26.5% and 28.5%
  • Average sales price per home closed between $275,000 and $285,000

Headwinds

  • General economic conditions, including interest rates and mortgage availability, in the remainder of 2021 are similar to those experienced in the first quarter of 2021
  • Average sales price per home closed, construction costs, availability of construction materials, availability of land, land development costs and overall absorption rates in the remainder of 2021 are consistent with the Company’s recent experience
  • Governmental regulations relating to land development, home construction and COVID-19 are similar to those currently in place
  • Any further COVID-19 governmental restrictions on land development or home construction could negatively impact the Company’s ability to achieve this guidance.
  • Effective tax rate for the remainder of 2021 between 21.0% and 22.0%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.3%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+1.5%

Avg return

30 days after

51%

25 / 49 earnings

Positive

+27.0%

Q2 2015

Best reaction

-16.7%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.7%+7.1%+7.5%
Q4 2025-4.4%-8.8%-39.1%
Q3 2025+9.3%+14.7%+24.3%
Q1 2025-7.8%-7.0%-14.4%
Q3 2024+6.2%+5.4%+2.1%
Q2 2024+9.6%+1.5%+1.6%
Q1 2024-6.9%+0.7%-0.6%
Q4 2023-9.7%-10.7%-11.2%
Q3 2023+12.6%+25.0%+32.8%
Q2 2023+0.6%-2.9%-11.3%
Q1 2023-1.6%-2.6%-3.1%
Q4 2022-8.7%-8.0%-2.7%
Q3 2022-9.4%-9.5%+11.1%
Q2 2022-6.6%-5.4%-18.9%
Q1 2022+6.9%-0.2%+1.0%
Q4 2021+5.4%+2.3%+1.4%
Q3 2021-10.2%-10.5%-0.7%
Q2 2021-8.2%-8.5%-5.7%
Q1 2021+0.0%+6.6%-0.3%
Q4 2020+0.7%-5.1%+25.8%
Q3 2020+8.1%+4.8%-4.3%
Q2 2020-1.3%-5.2%-2.8%
Q1 2020+6.7%+13.9%+36.4%
Q4 2019-16.7%-19.0%-45.0%
Q3 2019-1.1%-6.9%-1.1%
Q2 2019+9.7%+10.8%+21.4%
Q1 2019-5.4%-2.7%+2.3%
Q4 2018-3.5%-4.7%-1.2%
Q3 2018-12.0%-8.9%-2.6%
Q2 2018+13.3%+16.9%+5.9%
Q1 2018-16.7%-18.0%-21.3%
Q4 2017-14.9%-14.4%+6.1%
Q3 2017+1.5%+2.0%+13.5%
Q2 2017-3.7%-4.1%-8.1%
Q1 2017+10.7%+9.3%+24.6%
Q4 2016+13.7%+11.2%+9.2%
Q3 2016+0.5%-0.6%+5.7%
Q2 2016+6.9%+5.7%+20.4%
Q1 2016-10.2%
Q4 2015+6.6%
Q3 2015-3.5%
Q2 2015+27.0%
Q1 2015+2.4%
Q4 2014+8.5%
Q3 2014-5.5%
Q2 2014-1.8%
Q1 2014+11.6%
Q4 2013-7.5%
Q3 2013+5.4%
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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