Forestar Group reports Q2 EPS 89c, consensus 72c

Reports Q2 revenue $333.8M, consensus $325.91M. CEO Donald Tomnitz said, “Demand for finished lots remained solid during Q2 2024. The Forestar team achieved strong results, including a 64% increase in pre-tax income to $58.9M on an 11% increase in revenues to $333.8M. Lots sold increased 10% to 3,289 lots. Forestar delivered attractive double-digit returns and increased profitability, with a pre-tax profit margin of 17.6%. 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 for the homebuilding industry. In fiscal 2024, 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 to drive our future growth. We will maintain our disciplined approach when investing capital to enhance the long-term value of Forestar.”