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Mar 31, 2024
Forestar Q2 2024 Earnings Report
Reported strong second quarter results driven by increased revenues and lot sales.
Key Takeaways
Forestar Group Inc. reported a strong second quarter with a 67% increase in net income to $45.0 million and an 11% increase in consolidated revenues to $333.8 million. The company sold 3,289 residential lots, a 10% increase year-over-year, and pre-tax income increased 64% to $58.9 million.
Net income increased 67% to $45.0 million, or $0.89 per diluted share.
Pre-tax income increased 64% to $58.9 million, with a pre-tax profit margin of 17.6%.
Consolidated revenues increased 11% to $333.8 million.
Residential lots sold increased 10% to 3,289 lots.
Forestar
Forestar
Forestar Revenue by Segment
Revenue by Segment
Residential Lot Sales Revenue
CapyFin.com Forward Guidance
Forestar expects to deliver between 14,500 and 15,500 lots, generating $1.4 billion to $1.5 billion in revenue for fiscal year 2024.
Positive Outlook
- Demand for finished lots remained solid during the second quarter of fiscal 2024.
- The Forestar team achieved strong results, including a 64% increase in pre-tax income to $58.9 million.
- Lots sold increased 10% to 3,289 lots.
- Forestar delivered attractive double-digit returns and increased profitability, with a pre-tax profit margin of 17.6%.
- Strong balance sheet and ample liquidity give flexibility to invest in land opportunities to drive future growth.
Challenges Ahead
- The supply of vacant developed lots, particularly at affordable price points, continues to be constrained across most of the country.
- No specific negative aspects were explicitly highlighted in the provided text, so these are potential challenges based on general economic conditions.
- Potential impacts of weather conditions and natural disasters.
- Risks of acquiring land, construction materials and skilled labor.
- Dependence on relationships with national, regional and local homebuilders.