LGI HOMES Reports Second Quarter Earnings Results for FY2023
August 10, 2023
🌥️Earnings Overview
For the second quarter of FY2023, LGI HOMES ($NASDAQ:LGIH) reported a total revenue of USD 645.3 million, which was 10.8% lower than the same period of the previous year. Net income also dropped 56.9%, amounting to USD 53.1 million compared to the year-ago quarter.
Market Price
On Tuesday, LGI HOMES reported its second quarter earnings results for FY2023. The stock opened at $136.5 and closed at $137.7, down by 0.7% from the prior closing price of 138.8. LGI HOMES attributed its performance to strong sales across its markets, as well as a commitment to cost containment and efficiency. This further demonstrates LGI HOMES’s continued commitment to its shareholders and customers.
Overall, despite a slight decline in its stock price, LGI HOMES’s second quarter earnings results demonstrate the company’s ability to continue to grow and deliver value to its stakeholders. With its strong financial performance and commitment to strategic investments, the company is well positioned to remain a leader in homebuilding in the years ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lgi Homes. More…
| Total Revenues | Net Income | Net Margin |
| 2.17k | 204.6 | 9.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lgi Homes. More…
| Operations | Investing | Financing |
| -14.32 | -10.36 | 26.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lgi Homes. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.14k | 1.41k | 73.52 |
Key Ratios Snapshot
Some of the financial key ratios for Lgi Homes are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.3% | -5.7% | 12.0% |
| FCF Margin | ROE | ROA |
| -0.7% | 9.5% | 5.2% |
Analysis
At GoodWhale, we have conducted an analysis of LGI HOMES‘s wellbeing using our proprietary Star Chart. Our analysis shows that LGI HOMES has an intermediate health score of 4/10, considering its cashflows and debt. This score suggests that it is likely to sustain future operations in times of crisis. Moreover, our analysis shows that LGI HOMES is strong in assets, medium in growth and profitability, and weak in dividend. We have classified LGI HOMES as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Such companies are likely to be attractive to investors who are looking for steady sources of income and long-term growth potential. Furthermore, investors who are looking for less risky investments with higher returns may be drawn to LGI HOMES due to its relatively strong financial health. More…
Peers
Its main competitors are Tri Pointe Homes Inc, Taylor Wimpey PLC, and Skyline Champion Corp. All three companies are large homebuilders that operate in the United States.
– Tri Pointe Homes Inc ($NYSE:TPH)
Tri Pointe Homes Inc is a homebuilding company that focuses on the construction and sale of single-family homes in the United States. As of 2022, the company had a market capitalization of 1.64 billion dollars and a return on equity of 16.87%. The company builds homes in a variety of locations across the country, including California, Colorado, Arizona, and Washington. In addition to new home construction, the company also provides homebuyers with a variety of services, such as home financing, home insurance, and home warranty services.
– Taylor Wimpey PLC ($LSE:TW.)
Taylor Wimpey PLC is a leading homebuilder in the United Kingdom with a strong focus on creating sustainable communities. The company has a market cap of 3.3 billion as of 2022 and a return on equity of 10.94%. Taylor Wimpey PLC is committed to creating value for all of its stakeholders and is dedicated to building high-quality homes and communities that people can be proud of.
– Skyline Champion Corp ($NYSE:SKY)
Skyline Champion Corp is a leading manufacturer and seller of modular and manufactured homes in North America. With a market cap of 2.69B and a ROE of 34.19%, the company is well-positioned to continue its growth trajectory in the coming years. Skyline’s homes are known for their quality construction and attention to detail, and the company has a strong reputation in the industry. In addition to its manufacturing and sales operations, Skyline also provides financing and insurance services to its customers.
Summary
LGI Homes, Inc. has reported its earnings results for the second quarter of FY2023, as of June 30 2023. Total revenue for the quarter was $645.3 million, a 10.8% decrease from the same period in the prior year. Net income decreased 56.9% to $53.1 million. Investors should analyze this data carefully before considering investing in LGI Homes.
Factors to consider include current and projected market conditions as well as industry trends, the company’s financial performance, and competitive position. LGI Homes’ financial performance should be compared to that of its peers to evaluate its competitive standing and investment potential.
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