NASDAQ$LGIH

LGI Homes Inc. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

LGI Homes achieved record results, driven by increased home sales revenues and average sales price.

LGI Homes reported a record third quarter with a 13.0% increase in net income to $100.6 million, driven by a 40.7% increase in home sales revenues to $751.6 million and a 19.5% increase in home closings to 2,499 homes. The average sales price per home closed increased by 17.7% to $300,764, and the gross margin improved by 160 basis points to 26.9%.

  • Net income increased 13.0% to $100.6 million, or $4.05 Diluted EPS.
  • Home sales revenues increased 40.7% to $751.6 million.
  • Home closings increased 19.5% to 2,499 homes closed.
  • Average sales price per home closed increased 17.7% to $300,764.

Headline financials

Total Revenue

$752M

Previous: $534M+40.7%
EPS (adj)

$4.05

Previous: $2.45+65.3%
Total Home Closings

2.5K

Previous: 2.1K+19.5%
Average Sales Price per Home Closed

$301K

Previous: $255K+17.7%
Free Cash Flow

$101M

Previous: $89M+13.0%
Net Income

$101M

Previous: $89M+13.0%
Operating Income

$138M

Previous: $77.4M+78.1%
Gross Profit

$202M

Previous: $135M+49.6%
Cash & Equivalents

$46.7M

Previous: $46.3M+0.8%
Total Assets

$2.15B

Previous: $1.76B+22.2%
Stock-Based Comp

$3.35M

Previous: $3.93M-14.6%

Revenue & EPS history

LGI Homes · Revenue · Quarterly

$752M

Q3 2021+40.7%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The Company is providing updates to its guidance for the full year 2021.

Tailwinds

  • Home closings between 10,000 and 10,500
  • Active selling communities at the end of 2021 between 100 and 105
  • Average sales price per home closed between $285,000 and $295,000
  • Gross margin as a percentage of home sales revenues between 26.5% and 27.5%
  • Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 28.0% and 29.0%

Headwinds

  • SG&A as a percentage of home sales revenues between 9.0% and 9.5%
  • Effective tax rate between 20.0% and 21.0%
  • General economic conditions, including interest rates and mortgage availability, in the remainder of 2021 are similar to those experienced so far in the fourth 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.

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 Q3 2021

Historical avgQ3 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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