Why LGI Homes (LGIH) Shares Are Falling Today - LGI Homes (NASDAQ:LGIH)

LGI Homes Inc LGIH shares are down after reporting mixed first-quarter results.
LGIH reported a first-quarter FY23 home sales revenue decline of 10.7% year-on-year to $487.36 million, beating the consensus of $467.54 million.
EPS of $1.14 missed the analyst consensus of $1.25.
The company started the quarter with "limited homes in inventory and lowest backlog in four years." As of March 2023, the company's ending backlog value stood at $561.42 million, down 33.9% Y/Y.
Home Closings decreased by 14.6% to 1,366 homes closed. Average Sales Price per home closed increased 4.5% from the first quarter of 2022 to $356,777.
Adjusted gross margin contracted to 22.1% in Q1, lower than the margin of 30.3% a year ago.
The company held $42.97 million in cash and equivalents as of March 31, 2023.
Outlook: LGI Homes raised the FY23 outlook for average sales price per home closed of $345,000-$360,000. Earlier guidance was in the band of $335,000-$350,000.
Price Action: LGIH shares are trading lower by 6.66% at $110.65 on the last check Tuesday.

Why LGI Homes Shares Are Falling Today