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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%.
Forestar
Forestar
Forestar Revenue by Segment
Revenue by Segment
Residential Lot Sales Revenue
CapyFin.comTract Sales and Other Revenue
CapyFin.com 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
- Competitive conditions in the industry
Revenue & Expenses
Visualization of income flow from segment revenue to net income