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Sep 30, 2022
Forestar Q4 2022 Earnings Report
Reported a 15% increase in net income and a 13% increase in pre-tax income, driven by growth in revenues, pre-tax income, and EPS.
Key Takeaways
Forestar Group Inc. reported strong fourth-quarter and fiscal year 2022 results. Net income attributable to Forestar increased 15% to $50.8 million, or $1.02 per diluted share. Pre-tax income increased 13% to $66.4 million. Revenues for the quarter decreased 9% to $381.4 million.
Net income attributable to Forestar increased 15% to $50.8 million or $1.02 per diluted share.
Pre-tax income increased 13% to $66.4 million, with pre-tax profit margin increasing 340 basis points to 17.4%.
Consolidated revenues reached $381.4 million on 3,914 lots sold.
The company ended the year with $621.5 million in liquidity.
Forestar
Forestar
Forestar Revenue by Segment
Revenue by Segment
Residential Lot Sales Revenue
CapyFin.comTract Sales and Other Revenue
CapyFin.com Forward Guidance
While annual guidance is not provided due to market uncertainty, Forestar expects to continue consolidating market share. The company's strong balance sheet and liquidity provide significant financial and operational flexibility, and they plan to maintain a disciplined approach to capital investment.
Positive Outlook
- Continue consolidating market share
- Strong balance sheet
- Ample liquidity
- Significant financial flexibility
- Operational flexibility
Challenges Ahead
- Uncertainty in the market
- Shortages of certain materials
- Municipality delays
- Inflation
- Historic rise in mortgage interest rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income