LGI Homes Inc. (LGIH) saw its stock surge 9.38% on Tuesday, February 25th, in the pre-market trading session following the release of its fourth quarter and full year 2024 financial results. The homebuilder reported that despite a challenging macroeconomic backdrop, its profitability metrics rebounded to pre-pandemic levels, signaling a stronger-than-expected performance.
For the fourth quarter of 2024, LGI Homes' revenue declined 8.4% year-over-year to $557.4 million, while net income fell 2.3% to $50.9 million. However, the company's gross margin improved by 120 basis points to 24.2%, and its adjusted gross margin rose 160 basis points to 26.3%, aligning with historical averages.
Looking ahead to 2025, LGI Homes provided a conservative outlook, projecting home closings between 6,200 and 7,000 units, with an average sales price ranging from $360,000 to $370,000. The company expects its gross margin to range from 23.2% to 24.2%, while its adjusted gross margin is anticipated to be between 25.5% and 26.5%, supported by a robust self-developed land pipeline.
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