LGI Homes (LGIH) Reports Earnings Tomorrow: What To Expect

Affordable single-family home construction company LGI Homes (NASDAQ:LGIH) will be announcing earnings results this Tuesday before market hours. Here’s what you need to know.

LGI Homes missed analysts’ revenue expectations by 5% last quarter, reporting revenues of $351.4 million, down 10.1% year on year. It was a disappointing 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.

This quarter, analysts are expecting LGI Homes’s revenue to decline 20.1% year on year to $481.4 million, a further deceleration from the 6.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.31 per share.

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 six times over the last two years.

Looking at LGI Homes’s peers in the home builders segment, some have already reported their Q2 results, giving us a hint as to what we can expect. D.R. Horton’s revenues decreased 7.4% year on year, beating analysts’ expectations by 5%, and Taylor Morrison Home reported revenues up 2%, topping estimates by 3.9%. D.R. Horton traded up 12.9% following the results while Taylor Morrison Home was down 9.1%.

Read our full analysis of D.R. Horton’s results here and Taylor Morrison Home’s results here.

Investors in the home builders segment have had steady hands going into earnings, with share prices flat over the last month. LGI Homes is up 4.4% during the same time and is heading into earnings with an average analyst price target of $93.33 (compared to the current share price of $54.48).

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