•
Dec 31, 2021
Forestar Q1 2022 Earnings Report
Forestar reported strong first quarter results driven by increased lot sales and improved profitability.
Key Takeaways
Forestar Group Inc. reported a significant increase in net income, pre-tax income, and revenues for the first quarter of fiscal 2022. Net income attributable to Forestar increased by 84% to $40.5 million, and revenues increased by 33% to $407.6 million, driven by a 27% increase in residential lots sold.
Net income attributable to Forestar increased 84% to $40.5 million, or $0.81 per diluted share.
Revenues increased 33% to $407.6 million.
Residential lots sold increased 27% to 4,516 lots.
Owned and controlled lots increased 33% to 103,300 lots.
Forestar
Forestar
Forestar Revenue by Segment
Forward Guidance
Forestar is increasing its guidance for fiscal year 2022.
Positive Outlook
- Expect to deliver between 19,500 and 20,000 lots.
- Anticipate generating approximately $1.7 billion of revenue.
- Expect pre-tax profit margin to be between 13.5% and 14.0% for the full fiscal year.
- Company expects continued robust growth.
- Company expects increasing pre-tax profitability and returns in the coming years.
Challenges Ahead
- The effect of D.R. Horton's controlling level of ownership.
- The impact of COVID-19 on the economy and our business.
- The cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions.
- Supply shortages and other risks of acquiring land, construction materials and skilled labor.
- Competitive conditions in our industry.