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Dec 31, 2019
Forestar Q1 2020 Earnings Report
Reported earnings of $0.35 per diluted share for the first quarter of fiscal year 2020.
Key Takeaways
Forestar Group Inc. reported a significant increase in financial results for the first quarter of fiscal 2020. Net income attributable to Forestar increased by 412% to $16.9 million, with revenues increasing by 542% to $247.2 million. The number of residential lots sold also saw a substantial rise, increasing by 368% to 2,422 lots.
Net income attributable to Forestar increased 412% to $16.9 million.
Revenues increased 542% to $247.2 million.
Residential lots sold increased 368% to 2,422 lots.
The company's lot position consisted of 44,500 lots, with 32,200 owned and 12,300 controlled through purchase contracts.
Forestar
Forestar
Forestar Revenue by Segment
Revenue by Segment
Residential Lot Sales Revenue
CapyFin.com Forward Guidance
Forestar expects to deliver 10,000 lots during fiscal year 2020 and 12,000 lots in fiscal year 2021.
Positive Outlook
- Strategic relationship with D.R. Horton supports the rapid expansion of operating platform.
- Strategic relationship with D.R. Horton de-risks significant growth expectations.
- The company's business model is centered on high turnover.
- The company's business model is centered on lower risk lot manufacturing strategy.
- The company is well-positioned to consolidate market share.
Challenges Ahead
- Demand for new housing can be affected by the availability of mortgage credit.
- Demand for new housing can be affected by job growth.
- Demand for new housing can be affected by fluctuations in interest rates.
- The company's ability to comply with debt covenants, restrictions and limitations.
- General economic, market or business conditions where real estate activities are concentrated.