LGI Homes Q3 adjusted EPS beats on higher closings, cost controls

Overview

• US homebuilder's Q3 home sales revenue rose 10% yr/yr

• Adjusted EPS for Q3 beat analyst expectations

• Company narrowed full-year closings guidance due to affordability pressures

Outlook

• LGI Homes expects 2026 home closings between 4,600 and 4,800

• LGI Homes projects 2026 average sales price per home closed between $360,000 and $370,000

• Company says affordability pressures are expected to continue weighing on demand

Result Drivers

• HIGHER HOME CLOSINGS - Co said increased home closings drove revenue growth

• COST MANAGEMENT - Co attributed improved margins to disciplined cost management and self-developed land

• LOWER SG&A EXPENSES - Co said reduced SG&A expenses contributed to profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "hold."

• Wall Street's median 12-month price target for LGI Homes, Inc. is $82.50, about 74% above its November 2 closing price of $47.42

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

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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.)