Q1 net income up 131.8% from a year earlier as closings swell, prices rise and revenue surges.
Builder
LGI Homes, Inc., The Woodlands, Texas (Nasdaq:LGIH) on Tuesday reported net income of $27.3 million, or $1.10 per diluted share, for the first quarter ended March 31, up 131.8% from a year earlier. stoday announced results for the three months ended March 31, 2018. Analysts were looking for a gain of $0.78 per share.
The company attributed the earnings jump to a 63.5% increase in homes closed, a 4.8% increase in average home sales price, a 58.2% decrease in the effective tax rate and a decrease in operating leverage realized related to selling, general, and administrative expenses. For the three months ended March 31, 2018, the company’s effective tax rate of 12.6% was lower than the statutory rate primarily as a result of the deductions in excess of compensation cost for share-based payments.
