LGI Homes Full Year 2024 Earnings: Revenues Disappoint

LGI Homes (NASDAQ:LGIH) Full Year 2024 Results

Key Financial Results

• Revenue: US$2.20b (down 6.6% from FY 2023).
• Net income: US$196.1m (down 1.6% from FY 2023).
• Profit margin: 8.9% (up from 8.4% in FY 2023). The increase in margin was driven by lower expenses.
• EPS: US$8.33 (down from US$8.48 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

LGI Homes Revenues Disappoint

Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) was mostly in line with analyst estimates.

In the last 12 months, the only revenue segment was Homebuilding Business contributing US$2.20b. Notably, cost of sales worth US$1.67b amounted to 76% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to US$200.0m (59% of total expenses). Explore how LGIH's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 5.6% growth forecast for the Consumer Durables industry in the US.

Performance of the American Consumer Durables industry.

The company's shares are down 5.6% from a week ago.

Risk Analysis

Before we wrap up, we've discovered 1 warning sign for LGI Homes that you should be aware of.

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