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Jun 30, 2024
LGI Homes Q2 2024 Earnings Report
LGI Homes reported solid results, driven by community growth and outstanding profitability metrics.
Key Takeaways
LGI Homes announced strong second-quarter results with home sales revenues of $602.5 million, 1,655 home closings, and an average sales price of $364,047. The company's profitability metrics exceeded guidance, with a gross margin of 25.0% and adjusted gross margin of 27.0%.
Home sales revenues reached $602.5 million.
Closed 1,655 homes with an average sales price of $364,047.
Gross margin was 25.0%, and adjusted gross margin was 27.0%.
Diluted earnings per share increased by 10.2% to $2.48.
Revenue by Geographic Location
Forward Guidance
LGI Homes updated its full-year 2024 guidance, now expecting to close between 6,400 and 7,200 homes at an average selling price of $360,000 to $370,000. The company also increased its gross margin guidance range to between 23.5% and 24.5% and adjusted gross margin to between 25.5% and 26.5%.
Positive Outlook
- Expects to close between 6,400 and 7,200 homes in 2024.
- Anticipates average sales price per home closed between $360,000 and $370,000.
- Gross margin expected to be between 23.5% and 24.5%.
- Adjusted gross margin projected between 25.5% and 26.5%.
- Targeting approximately 150 active selling communities by the end of 2024.
Challenges Ahead
- Guidance assumes general economic conditions, including input costs, remain similar to those experienced to date in 2024.
- Guidance assumes construction costs and land availability remain consistent with recent experience.
- Guidance assumes governmental regulations relating to land development and home construction are similar to those currently in place.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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