Fly News Breaks for September 11, 2019
Sep 11, 2019 | 09:13 EDT
JPMorgan analyst Michael Rehaut downgraded LGI Homes to Neutral from Overweight while raising his price target for the shares to $84.50 from $77. The analyst updated his outlook for the Homebuilding sector and cites valuation for the downgrade of LGI.
News For LGIH From the Last 2 Days
Feb 25, 2020 | 07:10 EST
The Company offers the following guidance for 2020. The Company believes it will have between 120 and 130 active selling communities at the end of 2020 and close between 8,400 and 9,400 homes in 2020. In addition, the Company believes 2020 gross margin as a percentage of home sales revenues will be in the range of 22.5% and 24.5% and 2020 adjusted gross margin as a percentage of home sales revenues will be in the range of 24.5% and 26.5% 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 2020 will be between $235,000 and $245,000. This outlook assumes that general economic conditions, including interest rates and mortgage availability, in the remainder of 2020 are similar to those experienced so far in the first quarter of 2020 and that average home sales price, construction costs, availability of land, land development costs and overall absorption rates in the remainder of 2020 are consistent with the Company's recent experience.
Feb 25, 2020 | 07:08 EST
Reports Q4 revenue $605.6M, consensus $585.26M. Home Closings increased 35.8% to 2,515. "The fourth quarter completes another outstanding year at LGI Homes," said Eric Lipar, the Company's Chief Executive Officer and Chairman of the Board. "We finished the year with a record-breaking 7,690 home closings, achieved significant growth in home sales revenues generating $1.8 billion, increased community count by 20%, and delivered industry leading absorptions and strong operating margins resulting in $178.6 million in net income." As we turn our attention to 2020, we remain disciplined in our approach and focused on delivering strong results. Building off the momentum of 2019 and the sustained strength in housing demand, we believe we are poised for continued growth and believe we are well positioned to increase closings, revenues, and community count, allowing LGI Homes to achieve our long-term goal of generating market leading returns for our stockholders. Assuming that general economic conditions, including interest rates and mortgage availability, in 2020 are similar to those experienced so far in the first quarter of 2020, we believe we will close between 8,400 and 9,400 homes and end the year between 120 and 130 active selling communities."