Forestar Group reports Q3 EPS $1.44, consensus 94c

Reports Q3 revenue $549.7M, consensus $399.05M. Daniel Bartok, CEO, said, “The Forestar team finished the year strong in Q4, highlighted by a 44% increase in pre-tax income to $95.4M on revenues of $549.7M, with a pre-tax profit margin of 17.4%. We sold 4,986 lots in the quarter, demonstrating the resiliency of the new home market and builder demand despite higher mortgage interest rates. For the full year of fiscal 2023, the team generated $221.6M of pre-tax income on revenues of $1.4B, with a pre-tax profit margin of 15.4%. The supply of vacant developed lots, particularly at affordable price points, continues to be constrained across most of the country. With our strong balance sheet and low leverage, broad geographic footprint, attractive land portfolio and relationship with the nation’s largest builder, Forestar is well-positioned to continue to consolidate market share in the highly fragmented and under-capitalized lot development industry.”