LGI Homes Q1 2020 Earnings Report
Key Takeaways
LGI Homes reported a strong first quarter with a 133.7% increase in net income to $42.8 million and a 58.1% increase in home sales revenues to $454.7 million. Home closings increased by 49.4% to 1,835 homes, and the average home sales price rose by 5.8% to $247,808.
Net income increased by 133.7% to $42.8 million, or $1.69 basic EPS and $1.67 diluted EPS.
Home sales revenues increased by 58.1% to $454.7 million.
Home closings increased by 49.4% to 1,835 homes.
The average home sales price increased by 5.8% to $247,808.
LGI Homes
LGI Homes
LGI Homes Revenue by Geographic Location
Forward Guidance
Due to the uncertainty regarding the effects of the COVID-19 pandemic on both the U.S. economy and the Company’s business operations and financial performance, the Company has withdrawn its previously issued guidance for 2020.
Positive Outlook
- Business was stronger in April than originally expected.
- Positive momentum in recent sales trends suggests the impact from the COVID-19 pandemic may be less severe than originally expected.
- Building, selling and closing homes across the nation every day.
- Customers are expressing a greater desire to move out of densely populated living situations and into homes that offer more space and privacy.
- Outlook for the coming months is tempered, but positive.
Challenges Ahead
- Efforts to control the spread of COVID-19 resulted in a global economic slowdown.
- Combined impacts of social distancing, stay-at-home orders and other COVID-19 related dynamics in our markets slowed our pace of sales.
- Ongoing uncertainty in the US economy and the effects of COVID-19.
- Longer-term economic impacts to our business are impossible to predict at this time.
- Withdrew previously released 2020 guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income