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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
Revenue by Segment
Residential Lot Sales Revenue
CapyFin.comTract Sales and Other Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income