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Dec 31, 2020
Forestar Q1 2021 Earnings Report
Reported earnings of $0.46 per diluted share for the first quarter of fiscal year 2021.
Key Takeaways
Forestar reported a strong start to fiscal year 2021, with a 24% increase in revenues to $307.1 million and a 30% increase in net income to $22.0 million, or $0.46 per diluted share, compared to the same quarter of fiscal 2020. The company also increased residential lots sold by 47% to 3,567 lots.
Revenues increased 24% to $307.1 million compared to the same quarter of fiscal 2020.
Net income attributable to Forestar increased 30% to $22.0 million, or $0.46 per diluted share.
Residential lots sold increased 47% to 3,567 lots.
Lot position increased 74% to 77,500 lots.
Forestar
Forestar
Forestar Revenue by Segment
Revenue by Segment
Residential Lot Sales Revenue
CapyFin.com Forward Guidance
Forestar expects to deliver between 13,500 and 14,000 lots in fiscal year 2021.
Positive Outlook
- Housing market conditions remain favorable across the country.
- Company expects to continue to consolidate market share.
- Company is well positioned to operate through changing economic conditions due to low net leverage and strong liquidity position.
- Company has a low overhead model.
- Company has a strategic relationship with D.R. Horton.
Challenges Ahead
- Impacts of the COVID-19 pandemic could affect the company's business operations and the demand for its residential lots.
- Uncertainty regarding the extent to which and how long C-19 and its related effects will have on the U.S. economy, capital markets and demand for the Company's lots.
- Operational and financial performance will depend on future developments, including the duration and severity of C-19 and the impact on the Company's customers, trade partners and employees.
- Cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions.
- Competitive conditions in our industry.