LGI Homes Falls After Q4 Results

Shares of LGI Homes took a dip after the homebuilder released its fourth-quarter results, falling short of both top and bottom-line estimates.

Stock Performance

The stock saw an 8.4% decline, resting at $116.30 during morning trading. Year to date, shares are down by 12.7%.

Financial Insights

LGI Homes reported a fourth-quarter profit of $52.1 million or $2.19 per share, showing an increase from $34.1 million or $1.45 per share in the previous year. Despite the growth, analysts had anticipated earnings of $2.66 per share.

Sales for the quarter ending on Dec. 31st reached $608.4 million, up from $488.3 million. The increase in home sales revenues amounted to nearly 25%, with a 21% rise in the number of homes closed during the quarter, totaling 1,758 homes. Wall Street's projection for fourth-quarter sales was $664 million.

Outlook and Forecast

LGI Homes has set the target to close between 7,000 and 8,000 homes in 2024, compared to 6,729 homes closed last year. However, analysts surveyed by FactSet had foreseen the company's home closings for fiscal year 2024 to exceed LGI Homes' highest estimates at 8,336.

For the upcoming year, the average sales price per closed home is expected to range between $350,000 and $360,000. This falls in line with Wall Street's expectation of $356,000.