Overview
Residential lot developer's fiscal Q1 revenue rose 9%, beating analyst expectations
Net income for fiscal Q1 decreased 7% yr/yr
Company maintained strong liquidity with $819.3 mln available
Outlook
Forestar expects to deliver 14,000 to 15,000 lots in fiscal 2026
Company anticipates $1.6 bln to $1.7 bln in revenue for fiscal 2026
Forestar plans to maintain disciplined capital allocation for growth
Result Drivers
REVENUE GROWTH - Revenue increased 9% to $273 mln, driven by higher average sales price per lot
LOTS UNDER CONTRACT - 24,100 lots under contract, representing $2.2 bln of future revenue
STRONG LIQUIDITY - Co ended quarter with $819.3 mln in liquidity, supported by cash and credit facility
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$273 mln
$260.97 mln (3 Analysts)
Q1 EPS
$0.30
Q1 Net Income
$15.40 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Forestar Group Inc is $34.50, about 25.9% above its January 16 closing price of $27.40
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBw7K645za
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(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.)
