NASDAQ$LGIH

LGI Homes Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

LGI Homes reported strong Q2 2023 results driven by increased demand and focus on affordability, leading to raised full-year guidance.

LGI Homes announced strong second-quarter results with a 35.7% increase in home closings compared to the first quarter, generating $645.3 million in revenue. The company's focus on affordability and backlog strength drove the performance, leading to increased profitability and raised full-year closing and margin guidance.

  • Net income reached $53.1 million, resulting in $2.26 basic EPS and $2.25 diluted EPS.
  • Home sales revenues amounted to $645.3 million with 1,854 home closings.
  • The average sales price per home closed was $348,042.
  • Gross margin stood at 22.0%, with adjusted gross margin at 23.8%.

Headline financials

Total Revenue

$645M

Previous: $723M-10.8%
EPS (adj)

$2.25

Previous: $5.20-56.7%
Total Home Closings

1.9K

Previous: 2.0K-8.5%
Average Sales Price per Home Closed

$348K

Previous: $357K-2.4%
Capital Expenditures

$195K

No prior period
Free Cash Flow

$53.1M

Previous: $123M-56.9%
Net Income

$53.1M

Previous: $123M-56.9%
Operating Income

$65.1M

Previous: $159M-59.1%
Gross Profit

$142M

Previous: $231M-38.7%
Cash & Equivalents

$43.3M

Previous: $42M+3.2%
Total Assets

$3.14B

Previous: $2.87B+9.3%
Stock-Based Comp

$2.36M

Previous: $3.55M-33.4%

Revenue & EPS history

LGI Homes · Revenue · Quarterly

$645M

Q2 2023-10.8%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

LGI Homes raised its full-year closing guidance to a range between 6,500 and 7,200 homes and increased its full-year gross margin guidance to a range between 21.5% and 23.5%, and adjusted gross margin guidance to a range between 23.0% and 25.0%. The company anticipates having 115 to 125 active communities at year-end, with an additional 20% to 30% growth in community count in 2024.

Tailwinds

  • Home closings between 6,500 and 7,200.
  • 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 21.5% and 23.5%.
  • Adjusted gross margin as a percentage of home sales revenues between 23.0% and 25.0%.

Headwinds

  • General economic conditions, including input costs, materials, product and labor availability.
  • Interest rates and mortgage availability.
  • Construction costs.
  • Availability of land.
  • Land development costs.

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 Q2 2023

Historical avgQ2 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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