LGI Homes: Is Its Pricing Strategy To Offset Rising Costs Enough To Reduce Our Pessimism?

LGI Homes showcased a mixed financial performance in the first quarter of 2024, signaling both promising aspects and areas of concern that merit close investor attention. The company reported a revenue of $390.9 million, driven primarily by the delivery of 1,083 homes at an average selling price (ASP) of approximately $360,897. Despite a decline of 19.8% in revenue year-over-year, largely due to a decreased closing volume of 20.7%, LGI Homes managed to slightly offset this with a modest ASP increase of 1.2%.