Affordable single-family home construction company LGI Homes (NASDAQ:LGIH) will be reporting results this Tuesday before market open. Here’s what investors should know.
LGI Homes beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $396.6 million, down 39.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is LGI Homes a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting LGI Homes’s revenue to decline 14.3% year on year to $477.7 million, a further deceleration from the 8.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LGI Homes has missed Wall Street’s revenue estimates five times over the last two years.
Looking at LGI Homes’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Taylor Morrison Home’s revenues decreased 10.9% year on year, beating analysts’ expectations by 7.2%, and Champion Homes reported revenues up 1.8%, in line with consensus estimates. Taylor Morrison Home traded down 1.4% following the results while Champion Homes was up 11.1%.
Read our full analysis of Taylor Morrison Home’s results here and Champion Homes’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 8.1% on average over the last month. LGI Homes is up 11.5% during the same time and is heading into earnings with an average analyst price target of $67.50 (compared to the current share price of $59.17).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.