News Report of Sizzling Stock: LGI Homes, Inc. (NASDAQ: LGIH)

On 17 Dec 2019, LGI Homes, Inc stock identified change of 78.34% away from 52-week low price and recently located move of -19.25% off 52-week high price. LGIH stock has been recorded -6.25% away from 50 day moving average and -1.11% away from 200 day moving average. Moving closer, we can see that shares have been trading -0.61% off 20-day moving average. LGI Homes, Inc. noticed change of -1.32% to $71.86 along volume of 221498 shares in recent session compared to an average volume of 270.15K.

LGI Homes, Inc. (LGIH) recently reported results for the third quarter 2019 and the nine months ended September 30, 2019.

Third Quarter 2019 Results and Comparisons to Third Quarter 2018

Net Income of $49.3M, or $2.15 Basic EPS and $1.93 Diluted EPS

Net Income Before Income Taxes increased 32.1% to $64.7M

Home Sales Revenues increased 27.0% to $483.1M

Home Closings increased 25.1% to 2,003

Average Home Sales Price increased 1.5% to $241,179

Gross Margin as a Percentage of Homes Sales Revenues was 24.1%

Adjusted Gross Margin (non-GAAP) as a Percentage of Home Sales Revenues was 26.3%

Active Selling Communities at September 30, 2019 increased 27.2% to 103

48,803 Total Owned and Controlled Lots at September 30, 2019

2019 Third Quarter Results

Home closings during the third quarter of 2019 totaled 2,003, a raise of 25.1%, up from 1,601 home closings during the third quarter of 2018. The increase in homes closed was largely Because of geographic expansion in the Company’s West reportable section and by deepening their presence within certain markets in the Company’s Northwest, Southeast, and Central reportable sections during the third quarter of 2019 as contrast to the third quarter of 2018.

At the end of the third quarter, active selling communities increased to 103, up from 81 communities at the end of the third quarter of 2018.

Home sales revenues for the third quarter of 2019 were $483.1M, a raise of $102.7M, or 27.0%, over the third quarter of 2018. The increase in home sales revenues is primarily Because of the increase in home closings and a raise in the average home sales price during the third quarter of 2019.

The average home sales price for the third quarter of 2019 was $241,179, a raise of $3,597, or 1.5%, over the third quarter of 2018. This increase in average home sales price was primarily Because of changes in product mix, higher price points in new markets and a favorable pricing environment.

Gross margin as a percentage of home sales revenues for the third quarter of 2019 was 24.1% as contrast to 25.6% for the third quarter of 2018.  Adjusted gross margin (non-GAAP) as a percentage of home sales revenues for the third quarter of 2019 was 26.3% as contrast to 27.4% for the third quarter of 2018. This decrease in gross margin as a percentage of home sales revenues is primarily Because of higher lot costs and higher capitalized interest costs recognized for the third quarter of 2019 as contrast to the third quarter of 2018. Please see “Non-GAAP Measures” for a reconciliation of adjusted gross margin (non-GAAP) to gross margin, the most comparable GAAP measure.

Net income of $49.3M, or $2.15 per basic share and $1.93 per diluted share, for the third quarter of 2019 increased $11.6M, or 30.8%, from $37.7M, or $1.66 per basic share and $1.52 per diluted share, for the third quarter of 2018. The increase in net income is primarily attributed to operating leverage realized from the increase in home sales revenues and higher average home sales price, partially offset by lower gross margin percentage and higher capitalized interest costs recognized during the third quarter of 2019 as contrast to the third quarter of 2018.

LGIH’s shares are at -11.49% for the quarter and driving a 75.83% return over the course of the past year and is now at 58.91% since this point in 2018.   The average volatility for the week at 3.15% and for month was at 2.73%. There are 22.62M shares outstanding and 20.04M shares are floated in market. Right now, the stock beta is 0.45.

 

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