LGI Homes (NASDAQ: LGIH) reported Q2 EPS of $1.90, $0.21 better than the analyst estimate of $1.69. Revenue for the quarter came in at $419.8 million versus the consensus estimate of $407.31 million.

• Net Income increased 47.9% to $47.6 million, or $2.11 Basic EPS and $1.90 Diluted EPS
• Net Income Before Income Taxes increased 28.8% to $62.7 million
• Home Sales Revenues increased 29.5% to $419.8 million
• Home Closings increased 20.1% to 1,815 homes
• Average Home Sales Price increased 7.8% to $231,321
• Gross Margin as a Percentage of Homes Sales Revenues was 26.1% as compared to 26.6%
• Adjusted Gross Margin (non-GAAP) as a Percentage of Home Sales Revenues was 27.7% as compared to 28.0%
• Active Selling Communities at June 30, 2018 increased to 79 from 71
• 46,855 Total Owned and Controlled Lots at June 30, 2018

“We are proud to announce another quarter of outstanding performance at LGI Homes,” stated Eric Lipar, the Company’s Chief Executive Officer and Chairman of the Board. “We delivered impressive results highlighted by strong closings and record setting home sales revenues of approximately $420 million. We also produced record setting average sales price, community count, net income and earnings per share along with producing sequential improvement in gross margin and adjusted gross margin of 130 basis points.”

“LGI Homes achieved a record 3,059 closings through the first half of 2018, an increase of more than 34% over the first half of 2017. For the second quarter, we averaged an absorption rate of 7.8 closings per community per month.”

Lipar concluded, “Based on these strong results in the second quarter, our proven operational performance and the acquisition of Wynn Homes, we are raising our guidance. We now anticipate closings, for the full year 2018, to be between 6,400 and 7,000 homes closed. In addition, we expect full year 2018 gross margin to be in the range of 24.5% and 26.5%, including the impact of expected purchase accounting, full year 2018 adjusted gross margin in the range of 26.0% and 28.0% and full year 2018 average sales price in the range of $225,000 and $235,000. Therefore, we are raising our full year 2018 basic EPS guidance from $6.00 to $7.00 per share to $6.50 to $7.25 per share.”

GUIDANCE:

LGI Homes sees FY2018 EPS of $6.50-$7.25, versus the consensus of $6.36.

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