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Jun 30, 2023
LGI Homes Q2 2023 Earnings Report
LGI Homes reported strong Q2 2023 results driven by increased demand and focus on affordability, leading to raised full-year guidance.
Key Takeaways
LGI Homes announced strong second-quarter results with a 35.7% increase in home closings compared to the first quarter, generating $645.3 million in revenue. The company's focus on affordability and backlog strength drove the performance, leading to increased profitability and raised full-year closing and margin guidance.
Net income reached $53.1 million, resulting in $2.26 basic EPS and $2.25 diluted EPS.
Home sales revenues amounted to $645.3 million with 1,854 home closings.
The average sales price per home closed was $348,042.
Gross margin stood at 22.0%, with adjusted gross margin at 23.8%.
LGI Homes
LGI Homes
LGI Homes Revenue by Geographic Location
Revenue by Geographic Location
Central Revenue
CapyFin.comSoutheast Revenue
CapyFin.comNorthwest Revenue
CapyFin.comWest Revenue
CapyFin.comFlorida Revenue
CapyFin.com Forward Guidance
LGI Homes raised its full-year closing guidance to a range between 6,500 and 7,200 homes and increased its full-year gross margin guidance to a range between 21.5% and 23.5%, and adjusted gross margin guidance to a range between 23.0% and 25.0%. The company anticipates having 115 to 125 active communities at year-end, with an additional 20% to 30% growth in community count in 2024.
Positive Outlook
- Home closings between 6,500 and 7,200.
- Active selling communities at the end of 2023 between 115 and 125.
- Average sales price per home closed between $345,000 and $360,000.
- Gross margin as a percentage of home sales revenues between 21.5% and 23.5%.
- Adjusted gross margin as a percentage of home sales revenues between 23.0% and 25.0%.
Challenges Ahead
- General economic conditions, including input costs, materials, product and labor availability.
- Interest rates and mortgage availability.
- Construction costs.
- Availability of land.
- Land development costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income