LGI Homes (NASDAQ:LGIH) is set to give its latest quarterly earnings report on Tuesday, 2025-11-04. Here's what investors need to know before the announcement.
Analysts estimate that LGI Homes will report an earnings per share (EPS) of $0.94.
The market awaits LGI Homes's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Historical Earnings Performance
During the last quarter, the company reported an EPS beat by $0.09, leading to a 2.22% drop in the share price on the subsequent day.
Here's a look at LGI Homes's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.27 | 0.75 | 2.18 | 2.54 |
| EPS Actual | 1.36 | 0.43 | 2.15 | 2.95 |
| Price Change % | -2.00 | 0.00 | -3.00 | -1.00 |
Market Performance of LGI Homes's Stock
Shares of LGI Homes were trading at $40.81 as of October 31. Over the last 52-week period, shares are down 63.52%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Analysts' Take on LGI Homes
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on LGI Homes.
LGI Homes has received a total of 4 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $75.88, the consensus suggests a potential 85.93% upside.
Analyzing Analyst Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Smith Douglas Homes, Hovnanian Enterprises and Dream Finders Homes, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Underperform trajectory for Smith Douglas Homes, with an average 1-year price target of $16.0, suggesting a potential 60.79% downside.
- Analysts currently favor an Neutral trajectory for Hovnanian Enterprises, with an average 1-year price target of $120.0, suggesting a potential 194.05% upside.
- Analysts currently favor an Neutral trajectory for Dream Finders Homes, with an average 1-year price target of $28.0, suggesting a potential 31.39% downside.
Overview of Peer Analysis
The peer analysis summary outlines pivotal metrics for Smith Douglas Homes, Hovnanian Enterprises and Dream Finders Homes, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| LGI Homes | Outperform | -19.75% | $110.61M | 1.54% |
| Smith Douglas Homes | Underperform | 1.35% | $51.94M | 3.02% |
| Hovnanian Enterprises | Neutral | 10.78% | $106.70M | 1.98% |
| Dream Finders Homes | Neutral | -3.64% | $168.79M | 3.22% |
Key Takeaway:
LGI Homes ranks at the top for Gross Profit and Return on Equity among its peers. It is at the bottom for Revenue Growth. The company is in the middle for Consensus rating.
Unveiling the Story Behind LGI Homes
LGI Homes Inc is engaged in the design, construction, and sale of new homes in markets. The company current product offerings include entry-level homes, including both detached homes and townhomes, and move-up homes sold, which are sold under LGI Homes brand, and luxury series homes, which are sold under the Terrata Homes brand. It offers a set number of floor plans in each community with features that include upgrades, such as granite countertops, appliances, and ceramic tile flooring. The company have seven operating segments ( West, Northwest, Central, Midwest, Florida, Southeast and Mid-Atlantic) that it aggregates into five qualifying reportable segment. Majority of the revenue is generated from Central division segment.
LGI Homes's Economic Impact: An Analysis
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Challenges: LGI Homes's revenue growth over 3 months faced difficulties. As of 30 June, 2025, the company experienced a decline of approximately -19.75%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: LGI Homes's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 6.52%, the company may face hurdles in effective cost management.
Return on Equity (ROE): LGI Homes's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.54%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): LGI Homes's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.8%, the company may face hurdles in achieving optimal financial performance.
Debt Management: LGI Homes's debt-to-equity ratio stands notably higher than the industry average, reaching 0.86. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for LGI Homes visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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