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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Total revenue

$444.46 mln

Q3 Adjusted EPS

Beat

$1.05

$0.72 (3 Analysts)

Q3 EPS

$1.05

Q3 Net Income

$24.56 mln

Q3 Pretax Profit

$33.31 mln


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


Reuters Recommended Reads

  • Nov 2 - Trump says Fannie Mae, Freddie Mac will invest $4.3 billion in Kansas mortgages in 2027

  • Nov 1 - Australian home prices fall for seventh month, looming rate hike adds to pain


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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