NYSE$FOR

Forestar Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported earnings of $0.21 per diluted share for the third quarter of fiscal year 2020.

Forestar Group Inc. reported a strong third quarter with a 102% increase in revenues to $177.9 million and a 46% increase in net income to $10.1 million, driven by a 75% increase in residential lots sold.

  • Net income attributable to Forestar increased 46% to $10.1 million, or $0.21 per diluted share.
  • Revenues increased 102% to $177.9 million.
  • Residential lots sold increased 75% to 2,023 lots.
  • The company ended the quarter with $355.6 million of unrestricted cash and $704.0 million in total liquidity.

Headline financials

Total Revenue

$178M

Previous: $88.2M+101.7%
EPS (adj)

$0.16

Previous: $0.16+0.0%
Avg Sales Price/Lot

$79.9K

Previous: $77.4K+3.2%
Capital Expenditures

-$600K

Previous: -$900K+33.3%
Free Cash Flow

$9.5M

Previous: $6M+58.3%
Net Income

$10.1M

Previous: $6.9M+46.4%
Operating Income

$9.6M

Previous: $6M+60.0%
Gross Profit

$20.8M

Previous: $12.9M+61.2%
Cash & Equivalents

$356M

Previous: $223M+59.5%
Total Assets

$1.69B

Previous: $1.33B+27.2%
Stock-Based Comp

$300K

Previous: $900K-66.7%

Revenue & EPS history

Forestar · Revenue · Quarterly

$178M

Q3 2020+101.7%vs Q3 2019
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Forestar · $550M total across 2 segments · Q4 2023

  • Residential Lot Sales
    $486M+39.8%
  • Tract Sales & Other
    $64.1M+131.4%

Forward guidance

Forestar is well positioned to consolidate market share and operate effectively due to its low net leverage, strong liquidity, low overhead model, and strategic relationship with D.R. Horton. However, the company remains cautious about the potential impact of COVID-19 on its operations and the overall economy.

Tailwinds

  • Forestar remains uniquely positioned to consolidate market share.
  • Forestar is well positioned to effectively operate during changing economic conditions.
  • Low net leverage.
  • Strong liquidity position.
  • Strategic relationship with D.R. Horton.

Headwinds

  • The impact of C-19 on the economy and our business.
  • The effect of D.R. Horton's controlling level of ownership on us and the holders of our securities.
  • Our ability to realize the potential benefits of the strategic relationship with D.R. Horton.
  • The effect of our strategic relationship with D.R. Horton on our ability to maintain relationships with our vendors and customers.
  • Demand for new housing, which can be affected by a number of factors including the availability of mortgage credit, job growth and fluctuations in interest rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+3.6%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+17.9%

Q4 2017

Best reaction

-15.3%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.4%+6.3%-1.3%
Q1 2026-4.6%-9.6%+8.2%
Q4 2025+6.6%-0.2%-1.0%
Q3 2025+0.6%+1.3%+1.8%
Q2 2025-0.6%+1.6%+6.2%
Q1 2025-10.1%-12.4%-14.0%
Q4 2024+0.9%-1.9%-5.6%
Q3 2024-14.8%-11.4%-18.6%
Q2 2024-7.5%-7.9%+2.4%
Q1 2024-8.7%-6.2%-6.9%
Q4 2023+14.9%+14.3%+20.3%
Q3 2023+13.1%+21.6%+19.9%
Q2 2023+10.4%+17.0%+31.7%
Q1 2023-9.7%-10.7%-15.6%
Q4 2022+15.9%+17.2%+32.0%
Q3 2022-6.2%-6.9%-11.6%
Q2 2022-3.5%-2.9%-6.1%
Q1 2022+8.8%+11.7%+1.9%
Q4 2021+3.2%+2.2%-2.5%
Q3 2021+12.4%+12.4%+5.3%
Q2 2021-1.1%-0.5%-9.8%
Q1 2021-1.1%-1.6%-3.2%
Q4 2020+5.6%+7.1%+12.5%
Q3 2020+2.7%+5.4%+9.1%
Q2 2020+0.9%+13.0%+24.0%
Q1 2020-0.4%-9.2%-2.3%
Q4 2019+3.2%+4.0%+4.9%
Q3 2019+3.0%+6.8%-5.2%
Q2 2019+0.8%+1.5%-2.6%
Q4 2018-0.4%+1.6%+7.6%
Q3 2018-15.3%-16.4%-20.3%
Q2 2018+1.1%+0.0%+5.5%
Q1 2018-2.2%-4.8%+2.8%
Q4 2017+17.9%+11.0%+6.7%
Q3 2017-4.8%-1.4%+27.0%
Q2 2017-0.9%-0.9%+0.3%
Q1 2017+0.0%+0.0%+14.9%
Q4 2016-1.5%-1.5%+2.6%
Q3 2016+3.5%+9.7%+19.8%
Q2 2016-2.0%-2.6%+2.5%
Q1 2016-5.9%
Q4 2015+10.0%
Q3 2015-5.8%
Q2 2015+3.0%
Q1 2015-5.8%
Q4 2014+8.3%
Q3 2014+0.5%
Q2 2014+0.0%
Q1 2014-5.9%
Q4 2013-0.5%
Q3 2013-6.3%
Q2 2013-4.9%
Q1 2013+5.0%
Q4 2012+3.7%
Q3 2012-10.0%
Q2 2012+4.0%
Q1 2011-1.1%
Q1 2012+2.3%
Q4 2009+5.4%
Q4 2011+5.4%
Q3 2010+3.5%
Q3 2011+3.5%
Q2 2010-9.2%
Q2 2011-9.2%
Q4 2010-9.2%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro