LGI Homes sees FY EPS $6.50-$7.25, consensus $6.34
The Company believes it will have between 85 and 90 active selling communities at the end of 2018, close more than 6,400 homes in 2018, and generate basic EPS between $6.50 and $7.25 per share during 2018. In addition, the Company believes 2018 gross margin as a percentage of home sales revenues will be in the range of 24.5% and 26.5% and 2018 adjusted gross margin as a percentage of home sales revenues will be in the range of 26.0% and 28.0% with capitalized interest accounting for substantially all of the difference between gross margin and adjusted gross margin. The Company also believes that the average home sales price in 2018 will be between $225,000 and $235,000. This outlook assumes that general economic conditions, including interest rates and mortgage availability, and average home sales price, construction costs, availability of land, land development costs and overall absorption rates in the remainder of 2018 are similar to those in the third quarter of 2018. This guidance also assumes that none of the Company's 4.25% Convertible Notes due November 15, 2019 are converted during the remainder of 2018.