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Jun 30, 2022
Forestar Q3 2022 Earnings Report
Forestar reported a strong third quarter with EPS increasing and significant pre-tax profit margin improvement.
Key Takeaways
Forestar Group Inc. reported financial results for the third fiscal quarter ended June 30, 2022. Net income attributable to Forestar increased 151% to $39.7 million, or $0.80 per diluted share. Revenues for the third quarter decreased 1% to $308.5 million.
Net income attributable to Forestar increased 151% to $39.7 million or $0.80 per diluted share
Pre-tax income increased 150% to $52.7 million, while pre-tax profit margin increased 1,040 basis points to 17.1%
Generated $308.5 million of revenues on 3,473 lots sold
Lots sold to customers other than D.R. Horton increased 213% to 435 lots
Revenue by Segment
Forward Guidance
Forestar is updating its guidance for fiscal 2022. They now expect their pre-tax profit margin for the full fiscal year to be approximately 14.25%. Additionally, they expect to deliver approximately 17,000 lots generating approximately $1.425 billion of revenue in fiscal 2022.
Positive Outlook
- Forestar's return-focused business model is centered on our high inventory turnover, low risk lot manufacturing strategy.
- Our liquidity and balance sheet strength enables us to effectively operate through changing economic conditions and positions us to be opportunistic when attractive opportunities present themselves.
- We expect continued profitable growth in the coming years, supported by our low net leverage
- We expect continued profitable growth supported by the engagement of our people
- We expect continued profitable growth supported by our strategic relationship with D.R. Horton and 97,000 lots owned and controlled at June 30, 2022.
Challenges Ahead
- Based on our fiscal year-to-date results and current market conditions, including development delays and moderation in housing demand, we are updating our guidance for fiscal 2022.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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