NASDAQ$LGIH

LGI Homes Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

LGI Homes reported first quarter results, demonstrating resilience and strategic adaptation in a changing market.

LGI Homes announced its Q1 2023 financial results, reporting a net income of $27.0 million, or $1.15 Basic EPS and $1.14 Diluted EPS. The company closed 1,366 homes with home sales revenues of $487.4 million. Net orders increased by 12.5% compared to the previous year.

  • Net income was reported at $27.0 million, with an EPS of $1.14.
  • Home sales revenues reached $487.4 million following 1,366 home closings.
  • The average sales price per home closed increased by 4.5% year-over-year to $356,777.
  • Net orders saw a 12.5% increase compared to Q1 2022, totaling 2,219.

Headline financials

Total Revenue

$487M

Previous: $546M-10.7%
EPS (adj)

$1.14

Previous: $3.25-64.9%
Total Home Closings

1.4K

Previous: 1.6K-14.6%
Average Sales Price per Home Closed

$357K

Previous: $341K+4.5%
Ending Backlog Homes

1.6K

Previous: 2.4K-36.0%
Ending Backlog Value

$561M

Previous: $849M-33.9%
Capital Expenditures

$76K

No prior period
Free Cash Flow

$27M

Previous: $78.7M-65.7%
Net Income

$27M

Previous: $78.7M-65.7%
Operating Income

$26.1M

Previous: $95.7M-72.8%
Gross Profit

$98.8M

Previous: $158M-37.6%
Cash & Equivalents

$43M

Previous: $53.3M-19.4%
Total Assets

$3.1B

Previous: $2.59B+19.5%
Stock-Based Comp

$3.1M

Previous: $3.57M-13.1%

Revenue & EPS history

LGI Homes · Revenue · Quarterly

$487M

Q1 2023-10.7%vs Q1 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

The Company now expects home closings between 6,300 and 7,100, active selling communities at the end of 2023 between 115 and 125, average sales price per home closed between $345,000 and $360,000, gross margin as a percentage of home sales revenues between 21.0% and 23.0%, adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 22.5% and 24.5%, SG&A as a percentage of home sales revenues between 12.5% and 13.5%, and effective tax rate between 23.5% and 24.5%.

Tailwinds

  • Home closings between 6,300 and 7,100.
  • Active selling communities at the end of 2023 between 115 and 125.
  • Average sales price per home closed between $345,000 and $360,000.
  • Gross margin as a percentage of home sales revenues between 21.0% and 23.0%.
  • Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 22.5% and 24.5%.

Headwinds

  • Outlook assumes general economic conditions similar to Q1 2023.
  • Assumes consistent input costs, materials, product and labor availability.
  • Assumes interest rates and mortgage availability remain similar to Q1 2023.
  • Assumes consistency in construction costs and land availability.
  • Assumes governmental regulations similar to those currently in place.

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 2023

Historical avgQ1 2023

+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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