LGI Homes (LGIH) reported $557.4 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 8.4%. EPS of $2.15 for the same period compares to $2.19 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $595.85 million, representing a surprise of -6.45%. The company delivered an EPS surprise of -6.93%, with the consensus EPS estimate being $2.31.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Core Insights - LGI Homes reported quarterly earnings of $2.15 per share, missing the Zacks Consensus Estimate of $2.31 per share, and down from $2.19 per share a year ago [1][2] - The company posted revenues of $557.4 million for the quarter, missing the Zacks Consensus Estimate by 6.45%, and down from $608.41 million year-over-year [3] - The stock has underperformed, losing about 15% since the beginning of the year compared to the S&P 500's gain of 1.7% [4] Earnings Performance - The earnings surprise for the quarter was -6.93%, with the company having surpassed consensus EPS estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $1.48, with expected revenues of $550.3 million, and for the current fiscal year, the estimate is $10.13 on $2.74 billion in revenues [8] Industry Context - LGI Homes belongs to the Real Estate - Development industry, which is currently ranked in the bottom 24% of over 250 Zacks industries [9] - The industry outlook can significantly impact stock performance, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Outlook - The estimate revisions trend for LGI Homes is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] - Investors are encouraged to monitor changes in earnings estimates for the coming quarters following the recent earnings report [5][8]

Home Sales Performance - Home sales revenues for Q4 2024 decreased by 8.4% to $557.4 million compared to Q4 2023[7] - Full year home closings for 2024 totaled 6,131 homes, including a bulk sale of 103 leased homes, representing a decrease of 10.4% from 2023[7] - Total home sales revenues for the year ended December 31, 2024, were $2,202,598, a decrease from $2,358,580 in 2023[22] - The company reported 6,028 home closings in 2024, down from 6,729 in 2023, with an average sales price per home closed of $365,394[22] - The average sales price per home closed increased by 5.1% to $363,598 in Q4 2024[7] - The average sales price per home closed in Q4 2024 was $363,598, compared to $346,083 in Q4 2023[21] Financial Metrics - Full year gross margin for 2024 was 24.2%, an increase of 120 basis points from 2023[7] - Adjusted gross margin for Q4 2024 was $140,295, down from $152,503 in Q4 2023, with a gross margin percentage of 22.9% compared to 23.4% in the previous year[20] - The company reported a gross margin of $533,288 for the year ended December 31, 2024, slightly down from $542,187 in 2023[20] - Projected full year gross margin for 2025 is expected to be between 23.2% and 24.2%[11] Future Projections - The company projects full year closings for 2025 to be between 6,200 and 7,000 homes, with an average sales price between $360,000 and $370,000[4] - The effective tax rate for 2025 is projected to be approximately 24.5%[11] Backlog and Inventory - Ending backlog value at December 31, 2024 was $236.5 million, with 599 homes in backlog[11] - As of December 31, 2024, the company had a backlog of 599 homes valued at $236,511, compared to 590 homes valued at $224,851 in 2023[25] - The company owned or controlled a total of 70,899 lots as of December 31, 2024, with 53,317 being owned lots[24] Market Activity - Active selling communities increased by 29.1% to 151 as of December 31, 2024[11] - The average community count for the year ended December 31, 2024, was 130.5, compared to 103.9 in 2023[22] - The average monthly absorption rate for the total reportable segments was 3.6 in Q4 2024, down from 5.2 in Q4 2023[21] Cancellation Rates - The cancellation rate for 2024 was 22.8%, an improvement from 25.4% in 2023[25] Liquidity - Total liquidity as of December 31, 2024 was $323.7 million, including cash and cash equivalents of $53.2 million[11]

Core Insights - LGI Homes, Inc. reported financial results for Q4 and the full year 2024, achieving strategic goals despite a mixed macroeconomic environment [1][2] - The company closed 6,131 homes in 2024, including a bulk sale of 103 leased homes, and ended the year with a record 151 active communities, a 29.1% increase [2][7] - Profitability improved with a full-year gross margin of 24.2% and an adjusted gross margin of 26.3%, both reflecting increases over 2023 [2][7] Financial Performance - Q4 2024 home sales revenues decreased by 8.4% to $557.4 million, while home closings fell by 12.8% to 1,533 homes [7] - The average sales price per home closed increased by 5.1% to $363,598 [7] - Full-year home sales revenues decreased by 6.6% to $2.2 billion, with home closings down 10.4% to 6,028 homes [7] - Net income before income taxes for the year decreased by 1.1% to $258.9 million, while net income fell by 1.6% to $196.1 million [7] Operational Highlights - The company maintained a pre-tax net income margin of 11.8%, up 70 basis points from the previous year [2] - As of December 31, 2024, LGI Homes had total owned and controlled lots of 70,899 and an ending backlog of 599 homes valued at $236.5 million [7][29] - The company plans to continue strategic investments to drive growth in the coming years [2] 2025 Outlook - For 2025, LGI Homes projects full-year closings between 6,200 and 7,000 homes, with an average sales price between $360,000 and $370,000 [3][12] - The company anticipates gross margins between 23.2% and 24.2%, and adjusted gross margins between 25.5% and 26.5% [3][12] - The outlook reflects a conservative approach due to ongoing affordability challenges in the housing market [3]

Core Insights - LGI Homes, Inc. has announced the grand opening of Ligurian Village, a new community in Stockton, California, aimed at providing affordable housing options for homebuyers [1] - The community features three-, four-, and five-bedroom homes with spacious layouts and includes the CompleteHome™ package with various upgrades at no additional cost [2] - Ligurian Village is strategically located near downtown Stockton, offering residents access to schools, shopping, dining, and outdoor activities, with convenient transportation links [3] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, recognized for its innovative approach to homebuilding [7] - Since its founding in 2003, LGI Homes has closed over 75,000 homes and has consistently delivered profitable financial results [7] - The company has received national recognition for quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [7]

Core Insights - LGI Homes, Inc. has opened two new communities in northeast Atlanta: Lake Preserve at Jackson Trail in Jefferson and Oakwood Terrace in Oakwood, with homes starting in the low-$300s [1] Group 1: Community Features - Lake Preserve at Jackson Trail offers a peaceful atmosphere with amenities such as a private lake, playground, and pavilion, ideal for families and outdoor enthusiasts [2] - Oakwood Terrace features modern, move-in ready townhomes with an open-concept layout, located near I-985 and Lake Lanier, providing easy access to shopping and recreational opportunities [4] Group 2: Company Commitment - LGI Homes emphasizes a seamless homebuying experience and aims to match families with homes that fit their needs, contributing to community growth [3][5] - The company ensures high-quality construction with the CompleteHome™ package, which includes energy-efficient appliances and stylish finishes at no extra cost [6] Group 3: Company Overview - Headquartered in The Woodlands, Texas, LGI Homes operates in 36 markets across 21 states and has closed over 75,000 homes since its founding in 2003, maintaining profitable financial results annually [8] - Recognized for quality construction and customer service, LGI Homes has received multiple workplace awards, including the Top Workplaces USA 2024 Award [8]

Core Insights - LGI Homes, Inc. has opened two new communities in the Oklahoma City market, namely The Enclave at Creekside Village and Hollow Brook, offering high-quality, newly constructed homes designed for family living [1]. Group 1: The Enclave at Creekside Village - Located in Yukon, OK, this community offers spacious one- and two-story floor plans ranging from 1,152 to 2,483 square feet, featuring three to five bedrooms [2]. - Homes include LGI Homes' CompleteHome Plus™ package, which features energy-efficient Whirlpool® kitchen appliances, granite countertops, and luxury vinyl-plank flooring, with pricing starting in the $280s [2]. - The community provides access to quality education through Mustang Public Schools and nearby recreational amenities, making it ideal for families and outdoor enthusiasts [3]. Group 2: Hollow Brook - Hollow Brook is situated in Tuttle, OK, recognized as one of the "Best Suburbs to Buy a House in Oklahoma" by Niche.com, with homes priced from the low $300s [4]. - The homes range from 1,405 to 2,483 square feet and include the CompleteHome™ package with stainless steel Whirlpool® kitchen appliances and open-concept layouts [4]. - The community offers convenient access to I-44 and essential amenities, making it suitable for family-friendly living [4]. Group 3: Company Overview - LGI Homes, headquartered in The Woodlands, Texas, operates in 36 markets across 21 states and has closed over 75,000 homes since its founding in 2003 [6]. - The company has consistently delivered profitable financial results and has been recognized for its quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [6]. - LGI Homes has received numerous workplace awards, including the Top Workplaces USA 2024 Award, reflecting its commitment to excellence [6].

Core Insights - LGI Homes, Inc. has announced the grand opening of Esplanade, a new community in San Jacinto, California, aimed at providing affordable homeownership options [1][5] - The community features three to five-bedroom homes with modern upgrades included in the base price, enhancing value for homebuyers [2][5] - Esplanade offers a range of amenities and recreational opportunities, including parks, sports courts, and walking trails, catering to families and outdoor enthusiasts [3][4] Company Overview - LGI Homes is headquartered in The Woodlands, Texas, and operates in 36 markets across 21 states, recognized for its innovative approach to homebuilding [6] - Since its founding in 2003, LGI Homes has closed over 75,000 homes and has consistently delivered profitable financial results [6] - The company has received national recognition for quality construction and customer service, including being named one of Newsweek's World's Most Trustworthy Companies [6]

Group 1 - LGI Homes, Inc. closed 219 homes in January 2025, indicating ongoing operational activity and sales performance [1] - As of January 31, 2025, the company had 148 active selling communities, reflecting its market presence and expansion strategy [1] - LGI Homes has closed over 75,000 homes since its founding in 2003, showcasing its growth trajectory and market penetration [2] Group 2 - The company is recognized for its innovative and systematic approach to homebuilding across 36 markets in 21 states, positioning it as a leader in the industry [2] - LGI Homes has delivered profitable financial results every year, highlighting its financial stability and operational efficiency [2] - The company has received accolades for quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [2]

Core Points - LGI Homes closed 580 homes in December 2024, totaling 1,636 homes for the fourth quarter and 6,131 homes for the full year 2024 [1][2] - The company had 151 active selling communities as of December 31, 2024 [1][2] - CEO Eric Lipar expressed satisfaction with the team's performance and confirmed that the company met its guidance targets for home closings and active community count [2] - LGI Homes plans to release its financial results for Q4 and full year 2024 on February 25, 2025, followed by a conference call [3][4] Company Overview - LGI Homes, headquartered in The Woodlands, Texas, is recognized for its innovative approach in the homebuilding industry, operating in 36 markets across 21 states [5] - Since its founding in 2003, the company has closed over 75,000 homes and has consistently delivered profitable financial results [5] - LGI Homes has received national recognition for quality construction and customer service, including being named to Newsweek's list of the World's Most Trustworthy Companies [5]