LGI Homes (NASDAQ: LGIH) reported Q3 EPS of $1.52, $0.05 better than the analyst estimate of $1.47. Revenue for the quarter came in at $380.37 million versus the consensus estimate of $378.95 million.

“This was a solid and productive quarter for LGI Homes,” said Eric Lipar, the Company’s Chief Executive Officer and Chairman of the Board. “We ended the quarter with over 1,600 closings, reached new company highs for average sales price, showed margin improvement and completed the largest acquisition in LGI Homes history with the purchase of Wynn Homes for approximately $80 million.”

“We continued to see strong demand and increased traffic in our information centers, from renters wanting to convert to homeownership, proving that buyer interest levels are still high. Our focus on keeping margins consistent and offsetting rising costs, coupled with rising interest rates has created some challenges around affordability ultimately slowing our absorption pace in recent months. We remain optimistic on industry dynamics and current operating conditions for the remainder of the year. We expect to close more than 6,400 homes, believe average sales price will be between $225,000 and $235,000, and believe basic EPS will be in the range of $6.50 to $7.25 for the full year 2018. This assumes that general economic conditions, including interest rates and mortgage availability for the remainder of the year, are similar to the third quarter of 2018.”

“Looking forward to 2019, we are on track to grow community count 20-30% across the country continuing our focus on providing an affordable alternative to renting. We believe this growth will offset any future absorption concerns and continue to drive growth for LGI in 2019.”

GUIDANCE:

LGI Homes sees FY2018 EPS of $6.50-$7.25, versus the consensus of $6.34.

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