LGI Homes Updates Its Fiscal 2024 Guidance: Now Expects Home Closings Of 6,400-7,200 (Prior 7,000-8,000), And Adjusted Gross Margin As Percentage Of Home Sales Revenues Of 25.5%-26.5% (Prior 25%-26%)

Author: Benzinga Newsdesk | July 30, 2024 07:56am

"On the momentum of these results, we now turn our attention to the remainder of 2024. Based on our performance to date, current backlog, and view on the inventory available to close this year, we are adjusting our guidance. We now expect to close between 6,400 and 7,200 homes this year at a higher average selling price of between $360,000 and $370,000. Additionally, we have increased our gross margin guidance range to between 23.5% and 24.5% and adjusted gross margin to between 25.5% and 26.5%."

 

Full Year 2024 Outlook

Subject to the caveats in the Forward-Looking Statements section of this press release and the assumptions noted below, the Company is providing the following updates to its guidance for the full year 2024. The Company now expects:

• Home closings between 6,400 and 7,200
• Active selling communities at the end of 2024 of approximately 150
• Average sales price per home closed between $360,000 and $370,000
• Gross margin as a percentage of home sales revenues between 23.5% and 24.5%
• Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 25.5% and 26.5% with capitalized interest accounting for substantially all of the difference between gross margin and adjusted gross margin
• SG&A as a percentage of home sales revenues between 13.0% and 14.0%
• Effective tax rate between 24.0% and 25.0%

Posted In: LGIH