Note: EPS may not be copmarable

LGI Homes (NASDAQ: LGIH) reported Q4 EPS of $1.43, $0.04 better than the analyst estimate of $1.39. Revenue for the quarter came in at $404.98 million versus the consensus estimate of $385.46 million.

Fourth Quarter 2017 Results and Comparisons to Fourth Quarter 2016

• Net Income increased 53.6% to $35.6 million, or $1.65 Basic EPS and $1.43 Diluted EPS
• Net Income Before Income Taxes increased 57.5% to $55.0 million
• Home Sales Revenues increased 71.0% to $405.0 million
• Home Closings increased 61.9% to 1,844 homes
• Average Home Sales Price increased 5.6% to $219,618
• Gross Margin as a Percentage of Homes Sales Revenues was 24.4% as compared to 27.2%
• Adjusted Gross Margin (non-GAAP) as a Percentage of Home Sales Revenues was 25.8% as compared to 28.5%
• Active Selling Communities at December 31, 2017 increased to 78 from 63
• 39,709 Total Owned and Controlled Lots at December 31, 2017

Outlook

Subject to the caveats in the Forward-Looking Statements section of this press release, the Company offers the following guidance for 2018. The Company believes it will have between 85 and 90 active selling communities at the end of 2018, close between 6,000 and 7,000 homes in 2018, and generate basic EPS between $6.00 and $7.00 per share during 2018. In addition, the Company believes 2018 gross margin as a percentage of home sales revenues will be in the range of 24.0% and 26.0% and 2018 adjusted gross margin (non-GAAP) as a percentage of home sales revenues will be in the range of 25.5% and 27.5% with capitalized interest accounting for substantially all of the difference between gross margin and adjusted gross margin. The Company also believes that the average home sales price in 2018 will be between $220,000 and $230,000. This outlook assumes that general economic conditions, including interest rates and mortgage availability, in the remainder of 2018 are similar to those in the first quarter of 2018 and that average home sales price, construction costs, availability of land, land development costs and overall absorption rates for 2018 are consistent with the Company’s recent experience.

GUIDANCE:

LGI Homes sees FY2018 EPS of $6.00-$7.00, versus the consensus of $6.13.

For earnings history and earnings-related data on LGI Homes (LGIH) click here.