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 missed analysts’ revenue expectations last quarter, reporting revenues of $474 million, down 15% 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, the market is expecting LGI Homes’s revenue to decline 5.9% year on year, improving from the 10.1% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at LGI Homes’s peers in the home builders segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Taylor Morrison Home’s revenues decreased 26.8% year on year, beating analysts’ expectations by 4.1%, and D.R. Horton reported a revenue decline of 2.3%, falling short of estimates by 0.7%. Taylor Morrison Home traded up 3.9% following the results while D.R. Horton was also up 5.1%.
Read our full analysis of Taylor Morrison Home’s results here and D.R. Horton’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 15% on average over the last month. LGI Homes is up 19.2% during the same time and is heading into earnings with an average analyst price target of $65.50 (compared to the current share price of $45.00).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
