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Sep 30, 2020
Forestar Q4 2020 Earnings Report
Reported a strong increase in revenue and net income, driven by significant growth in residential lots sold.
Key Takeaways
Forestar Group Inc. reported a substantial increase in financial performance for the fourth quarter of fiscal year 2020. Net income attributable to Forestar increased by 91% to $24.2 million, or $0.50 per diluted share. Revenues increased by 47% to $347.6 million, and residential lots sold surged by 108% to 3,977 lots.
Net income attributable to Forestar increased 91% to $24.2 million, or $0.50 per diluted share.
Revenues increased 47% to $347.6 million.
Residential lots sold increased 108% to 3,977 lots.
The company expects to deliver between 13,000 and 13,500 lots in fiscal year 2021.
Forward Guidance
Forestar expects to deliver between 13,000 and 13,500 lots in fiscal 2021.
Positive Outlook
- Housing market conditions remain favorable across the country.
- Forestar is consolidating market share in the fragmented and under-capitalized U.S. lot development industry.
- The company's return-focused business model is centered on a high turnover, lower risk lot manufacturing strategy.
- Forestar is well positioned to effectively operate through changing economic conditions due to its low net leverage and strong liquidity position.
- The company has a strategic relationship with D.R. Horton, the nation’s largest homebuilder.
Challenges Ahead
- The impacts of the COVID-19 pandemic and the related widespread reductions in economic activity began to temporarily affect the Company’s business operations and the demand for its residential lots.
- There is significant uncertainty regarding the extent to which and how long C-19 and its related effects will have on the U.S. economy, capital markets and demand for the Company's lots.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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