NYSE$FOR
Forestar Group Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Forestar reported a strong third quarter with EPS increasing and significant pre-tax profit margin improvement.
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
Headline financials
Revenue & EPS history
Forestar · Revenue · Quarterly
$309M
Revenue by segment
Forestar · $5.5M total across 1 segment · Q3 2022
- Tract Sales & Other$5.5M+0.0%100.0%
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.
Tailwinds
- 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.
Headwinds
- 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.
- We now expect our pre-tax profit margin for the full fiscal year to be approximately 14.25% compared to our prior guidance of 14.0% to 14.5%.
- We expect to deliver approximately 17,000 lots generating approximately $1.425 billion of revenue in fiscal 2022, compared to our prior guidance of between 19,500 and 20,000 lots generating approximately $1.7 billion of revenue.
- Development delays
- Moderation in housing demand
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 2022
+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
| Quarter | Report date | Reaction (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% | — | — |
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