Loading...
•
Mar 31, 2022
Forestar Q2 2022 Earnings Report
Reported a strong second quarter with increased revenue and net income.
Key Takeaways
Forestar Group Inc. reported a significant increase in financial performance for the second quarter of fiscal year 2022. Net income attributable to Forestar increased by 68% to $47.8 million, and revenues increased by 47% to $421.6 million. The company sold 5,788 residential lots, a 61% increase compared to the same quarter of the previous year.
Net income attributable to Forestar increased 68% to $47.8 million, or $0.96 per diluted share.
Revenues increased 47% to $421.6 million.
Residential lots sold increased 61% to 5,788 lots.
Pre-tax profit margin increased 190 basis points to 15.0%.
Revenue by Segment
Forward Guidance
Forestar expects to deliver between 19,500 and 20,000 lots generating approximately $1.7 billion of revenue in fiscal 2022. Pre-tax profit margin for the full fiscal year is expected to be between 14.0% and 14.5%.
Positive Outlook
- Strong end-market demand
- High inventory turnover
- Low risk lot manufacturing strategy
- Low net leverage and strong liquidity
- Strategic relationship with D.R. Horton
Challenges Ahead
- Cyclical nature of the homebuilding and lot development industries
- Changes in economic, real estate and other conditions
- Impacts of weather conditions and natural disasters
- Supply shortages and other risks of acquiring land, construction materials and skilled labor
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...