LGI Homes (LGIH) Q4 Earnings and Revenues Miss Estimates

LGI Homes (LGIH) came out with quarterly earnings of $2.15 per share, missing the Zacks Consensus Estimate of $2.31 per share. This compares to earnings of $2.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.93%. A quarter ago, it was expected that this entry-level homebuilder in the Texas, Arizona, Florida and Georgia markets would post earnings of $2.53 per share when it actually produced earnings of $2.95, delivering a surprise of 16.60%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.LGI Homes, which belongs to the Zacks Real Estate - Development industry, posted revenues of $557.4 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.45%. This compares to year-ago revenues of $608.41 million. The company has topped consensus revenue estimates just once over the last four quarters.The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.LGI Homes shares have lost about 15% since the beginning of the year versus the S&P 500's gain of 1.7%.What's Next for LGI Homes?While LGI Homes has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.Ahead of this earnings release, the estimate revisions trend for LGI Homes: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.48 on $550.3 million in revenues for the coming quarter and $10.13 on $2.74 billion in revenues for the current fiscal year.Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Development is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Another stock from the same industry, Landsea Homes (LSEA), has yet to report results for the quarter ended December 2024. The results are expected to be released on February 27.This residential homebuilder is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +18.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.Landsea Homes' revenues are expected to be $545.15 million, up 37.1% from the year-ago quarter.Should You Invest in LGI Homes, Inc. (LGIH)?Before you invest in LGI Homes, Inc. (LGIH), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LGI Homes, Inc. (LGIH): Free Stock Analysis Report Landsea Homes Corporation (LSEA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks