Overview

* LGI Homes ( LGIH ) Q3 revenue at $396.6 mln, reflecting a decline from previous year

* Net income for Q3 at $19.7 mln, with EPS of $0.85

* Company closed 1,065 homes in Q3, with backlog up 19.9% yr/yr

Outlook

* LGI Homes ( LGIH ) expects Q4 home closings between 1,300 and 1,500

* Average sales price per home in Q4 expected between $365,000 and $375,000

* Q4 gross margin expected between 21% and 22%

Result Drivers

* NET ORDERS INCREASE - Co reports 8.1% yr/yr and 43.9% sequential increase in net orders due to strategic sales initiatives and inventory management

* BACKLOG GROWTH - Ending backlog increased 19.9% yr/yr, reflecting strong demand and effective strategic initiatives

* AFFORDABILITY FOCUS - Co emphasizes affordability and aligning with buyer payment capabilities as key to driving sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Home $396.60

Sales mln

Revenue

Q3 Net $19.70

Income mln

Q3 Gross 21.50%

Margin

Q3 24.50%

Adjusted

Gross

Margin

Q3 $26.70

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the homebuilding peer group is "buy."

* Wall Street's median 12-month price target for LGI Homes Inc ( LGIH ) is $85.00, about 52.1% above its November 3 closing price of $40.73

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)