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Jun 30, 2023
Forestar Q3 2023 Earnings Report
Reported an increase in net income and revenue due to strong demand for finished residential lots.
Key Takeaways
Forestar Group Inc. reported an 18% increase in net income to $46.8 million, or $0.93 per diluted share, and a 20% increase in consolidated revenues to $368.9 million for the third quarter of fiscal 2023. The company sold 3,812 lots during the quarter.
Net income increased 18% to $46.8 million or $0.93 per diluted share.
Pre-tax income increased 18% to $62.4 million, with a pre-tax profit margin of 16.9%.
Consolidated revenues increased 20% to $368.9 million on 3,812 lots sold.
Net debt to total capital ratio improved to 19.1%.
Forestar
Forestar
Forestar Revenue by Segment
Revenue by Segment
Tract Sales and Other Revenue
CapyFin.com Forward Guidance
Forestar is uniquely positioned to take advantage of the shortage of finished lots in the homebuilding industry and will continue to strive to maximize returns by balancing pace of sales and lot pricing.
Positive Outlook
- Commitment to operational excellence and a relentless focus on execution.
- Strong balance sheet and ample liquidity.
- Flexibility to invest in land opportunities.
- Ability to maintain an appropriate level of finished lots in inventory to meet builder demand.
- Ability to aggregate significant market share over the next few years.
Challenges Ahead
- Shortage of finished lots in the homebuilding industry.
- Balancing pace of sales and lot pricing.
- Maintaining disciplined approach when investing capital.
- Uncertainty in the homebuilding industry.
- Potential changes in economic conditions.