Affordable single-family home construction company LGI Homes (NASDAQ:LGIH) will be reporting earnings this Tuesday before the bell. Here's what investors should know.
LGI Homes beat analysts' revenue expectations last quarter, reporting revenues of $501.5 million, up 3.7% year on year. It was a very strong quarter for the company, with EPS in line with analysts' estimates.
Is LGI Homes a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members .
This quarter, the market is expecting LGI Homes's revenue to grow 9.2% year on year, a reversal from the 39.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. LGI Homes has missed Wall Street's revenue estimates multiple times over the last two years.
Looking at LGI Homes's peers in the home builders segment, some have already reported their Q3 results, giving us a hint as to what we can expect. KB Home's revenues decreased 20% year on year, meeting analysts' expectations, and D.R. Horton reported a revenue decline of 3.2%, topping estimates by 3.4%. KB Home traded down 3% following the results while D.R. Horton was up 2.8%.
Read our full analysis of KB Home's results here and D.R. Horton's results here .
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the home builders stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. LGI Homes is down 4.6% during the same time and is heading into earnings with an average analyst price target of $93 (compared to the current share price of $44.34).
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