LGI Homes (LGIH) Q4 Earnings and Revenues Miss Estimates

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]