Forestar Group reports Q1 EPS 42c, consensus 59c

Reports Q1 revenue $216.7M, consensus $286.87M. Book value per share increased 15% to $24.50. Daniel Bartok, CEO, said, "The Forestar team delivered a solid Q1 despite the demand for new single-family housing and finished lots continuing to moderate due to the significant increase in mortgage interest rates. For 1Q23, our gross profit margin increased 390 basis points year-over-year to 21.9%, and our pre-tax profit margin was 12.9%. The housing market is going through a period of transition, but we proactively planned for a slower environment by reducing our land acquisition over the past 18 months. At quarter end, we had over $580M of liquidity, providing us with significant financial and operational flexibility. We plan to leverage our platform and balance sheet to take advantage of market opportunities to continue to build shareholder value. Our team has managed through market cycles before, and we are well-positioned to navigate these challenging market conditions."