Forestar Group reports Q1 EPS 76c, consensus 50c

Reports Q1 revenue $305.9M, consensus $272.37M. CEO Donald Tomnitz said, “The Forestar team delivered solid results in Q1 of FY24, including an 84% increase in pre-tax income to $51.2M, a 41% increase in revenues to $305.9 million and a 39% increase in lots sold to 3,150 lots. Forestar delivered attractive double-digit returns and strong profitability, with a pre-tax profit margin of 16.7%. The supply of vacant developed lots, particularly at affordable price points, continues to be constrained across most of the country, and Forestar is uniquely positioned to take advantage of the shortage of finished lots in the homebuilding industry. In FY24, we still expect to deliver between 14,500 and 15,500 lots, generating $1.4B-$1.5B in revenue. We remain focused on growing our platform, turning our inventory, maximizing returns and consolidating market share in the highly fragmented lot development industry. Our strong balance sheet and ample liquidity give us the flexibility to invest in land opportunities that will drive our future growth. We will maintain our disciplined approach when investing capital to enhance the long-term value of Forestar.”