Stock Monitor: Stratus Properties Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 12, 2018 / Active-Investors.com has just released a free earnings report on LGI Homes, Inc. (NASDAQ: LGIH). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=LGIH. LGI Homes reported its fourth quarter fiscal 2017 operating and financial results on February 27, 2018. The entry-level homebuilder in the Texas, Arizona, Florida, and Georgia markets outperformed top- and bottom-line expectations and provided guidance for FY19. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Stratus Properties Inc. (NASDAQ: STRS), which also belongs to the Financial sector as the Company LGI Homes. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, LGI Homes most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=LGIH
Earnings Highlights and Summary
LGI Homes' home sales revenues surged 71.0% to $405.0 million for Q4 2017 compared to revenue of $236.8 million in Q4 2016, driven by the increase in the number of homes closed and an increase in the average home sales price. The Company's reported numbers beat analysts' estimates of $381 million.
For the twelve months ended December 31, 2017, LGI Homes' Homes sales revenue soared 50.1% to $1.26 billion compared to $838.3 million in FY16. The increase in home sales revenues was primarily due to the increase in the number of homes closed and an increase in the average home sales price.
During Q4 2017, LGI Homes' gross margin as a percentage of home sales revenues was 24.4% compared to 27.2% for Q4 2016. The Company's adjusted gross margin as a percentage of home sales revenues for the reported quarter was 25.8% compared to 28.5% for the prior year's same quarter. This decrease in gross margin was primarily due to a combination of increased home production and higher construction and lot costs partially offset by higher average home sales prices.
For Q4 2017, LGI Homes' net income was $35.6 million, or $1.43 per diluted share, increased from $23.2 million, or $1.01 per diluted share, for Q4 2016. This increase was primarily attributable to the 61.9% increase in homes closed, the 5.6% increase in average home sales price, and operating leverage realized related to selling, general, and administrative (SG&A) expenses. The Company's earnings beat Wall Street's estimates of $1.40 per share.
For FY17, LGI Homes' net income of $113.3 million, or $4.73 per diluted share, compared to earnings of $75.0 million, or $3.41 per diluted share, for FY16. The increase in earnings was primarily attributable to the 40.4% increase in homes closed, a higher average sales price, and improved operating leverage realized in FY17 related to SG&A expenses.
Operating Results
During Q4 2017, LGI Homes' Home closings surged 61.9% to 1,844 from 1,139 during Q4 2016. The Company's active selling communities increased to 78 at the end of the reported quarter, up from 63 communities at the end of Q4 2016.
For Q4 2017, LGI Homes' average home sales price was $219,618, reflecting an increase of 5.6% on a y-o-y basis. The increase was largely attributable to changes in product mix, price points in new markets, and a favorable pricing environment.
Cash Matters
As of December 31, LGI Homes had approximately $68 million in cash, $919 million of real estate inventory and total assets of over $1 billion. At December 31, 2017, LGI Homes had $400 million outstanding its revolving credit facility, and LGI Homes' borrowing capacity was approximately $161 million. Furthermore, LGI Homes had $85 million in convertible notes outstanding. The Company's gross debt to capitalization was approximately 49% and net debt to capitalization was approximately 45%.
During Q4 2017, LGI Homes completed its $25 million ATM (at-the-market) equity program that was initiated in FY16. The Company sold approximately 87,000 shares under the ATM program in the reported quarter, generating net proceeds of $5.5 million. For FY17, LGI Homes sold approximately 355,000 shares under the Company's 2016 ATM program, resulting in net proceeds of approximately $15.5 million.
Outlook
LGI Homes is forecasting to have 85 and 90 active selling communities at the end of FY18, close to between 6,000 and 7,000 homes in FY18, and generate basic earnings in the range of $6.00 and $7.00 per share during 2018. The Company is estimating FY18 gross margin as a percentage of home sales revenues to be in the range of 24.0% and 26.0% and 2018 adjusted gross margin as a percentage of home sales revenues to be in the band of 25.5% and 27.5%.
LGI Homes is estimating average home sales price in FY18 to be between $220,000 and $230,000.
Stock Performance Snapshot
April 11, 2018 - At Wednesday's closing bell, LGI Homes' stock dropped 3.30%, ending the trading session at $70.67.
Volume traded for the day: 329.61 thousand shares.
Stock performance in the last month - up 9.98%; previous six-month period - up 33.39%; and past twelve-month period - up 132.62%
After yesterday's close, LGI Homes' market cap was at $1.59 billion.
Price to Earnings (P/E) ratio was at 14.90.
The stock is part of the Financial sector, categorized under the Real Estate Development industry.
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