Demo
LGIH Nasdaq· LGI Homes Inc.
FundamentalsNews digest Peer analysis
Login
LGIH Nasdaq· LGI Homes Inc.
Earnings report Q4 2023

LGIH Reports Modest Increase in Home Sales Revenues in Latest Quarter

Segments of revenue

In the latest quarter, LGIH reported home sales revenues of $2.36 billion. These revenues were disaggregated by geography, with the Central region contributing $730.7 million, the Southeast region contributing $556.8 million, the Northwest region contributing $251.2 million, the West region contributing $381.1 million, and Florida contributing $438.8 million.

Strengths

LGIH demonstrated a modest increase in home sales revenues in the latest quarter, with a 2.3% growth compared to the same period last year. This growth can be attributed to the company's focus on delivering move-in ready entry-level and move-up spec homes under its LGI Homes and Terrata Homes brands. By providing standardized features within favorable markets that meet specific demographic and economic conditions, LGIH has been able to generate consistent revenues.

Challenges

Despite the increase in home sales revenues, LGIH experienced a decrease in gross margin as a percentage of home sales revenues, which decreased from 28.1% to 23.0% in the latest quarter. This indicates that the company faced challenges in managing its cost of sales, which may have impacted its profitability.

Noteworthy

It is worth noting that LGIH closed 6,729 homes in the latest quarter, representing a 1.6% increase compared to the same period last year. Additionally, the average sales price per home closed increased by 0.7% to $350,510. These figures indicate that LGIH has been able to maintain a steady level of home closings while also achieving a slight increase in average sales price.

Summary

LGIH reported a modest increase in home sales revenues in the latest quarter, driven by its focus on delivering move-in ready homes under its LGI Homes and Terrata Homes brands. However, the company faced challenges in managing its cost of sales, resulting in a decrease in gross margin. Despite this, LGIH maintained a steady level of home closings and achieved a slight increase in average sales price per home closed. Overall, LGIH's performance in the latest quarter reflects its ability to generate consistent revenues, but also highlights the need for cost management improvements.

Source documents

Form 10-K  filed on Feb 20, 2024
44 pages scanned

Reference data

Company financials Q4 revenue 608M
Analyst estimates Q4 EPS beat by 0.38%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.