Forestar edges past Q2 revenue estimates; narrows FY lot delivery view

Forestar

21/04/2026 11:38

Overview

U.S. residential lot developer's fiscal Q2 revenue grew 7%, slightly beating analyst expectations

Adjusted EPS for fiscal Q2 rose to $0.63

Company narrowed fiscal 2026 lot delivery guidance to 14,000-14,500 lots

Outlook

Forestar updates fiscal 2026 lot delivery guidance to 14,000-14,500 lots, down from 14,000-15,000

Company maintains fiscal 2026 revenue guidance of $1.6 bln to $1.7 bln

Forestar says affordability constraints and cautious consumer sentiment continue to impact new home sales pace

Result Drivers

HIGHER TRACT SALES - Increased tract sales and other revenue offset declines in residential lot sales

FEWER LOTS SOLD - Company sold 2,938 lots in Q2, down 14% from 3,411 in prior year quarter, citing ongoing affordability constraints and cautious consumer sentiment

HIGHER AVERAGE SALES PRICE - Average sales price per lot increased to $112,800 from $101,700 in prior year quarter

Company press release: ID:nBw9QbCN7a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$374.30 mln
$373.65 mln (5 Analysts)
Q2 EPS
$0.63
Q2 Net Income
$32.20 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the construction & engineering peer group is "hold."

Wall Street's median 12-month price target for Forestar Group Inc is $35.00, about 32.3% above its April 20 closing price of $26.46

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)