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Forestar Group reports Q4 EPS $1.02, consensus 48c
The Fly

Forestar Group reports Q4 EPS $1.02, consensus 48c

Reports Q4 revenue $381.4M, consensus $289.77M. CEO Daniel Bartok said, "The Forestar team finished the year strong and delivered outstanding results for FY22. Our Q4 pre-tax income increased 13% to $66.4M, and our pre-tax profit margin increased 340 basis points to 17.4%. We generated significant growth in revenues, pre-tax income and EPS with increased lot deliveries and improved pre-tax profit margins in FY22. Our operational and financial results exceeded expectations, and our strong performance is a testament to our differentiated business model and our team’s ability to react quickly and appropriately to market conditions. During most of FY22, housing market conditions remained strong. In July, we began to see a moderation in demand for finished lots that has continued through today. We are facing a challenging macroeconomic environment with rising interest rates, persistent inflation and softening housing fundamentals. We expect demand for residential lots will continue to moderate in the coming months as homebuilders align starts to a new sales pace. However, we are beginning FY23 from a position of strength. Forestar has over $620M of liquidity and one of the best capital structures in the residential lot development industry, which provides us with tremendous flexibility. We continue to manage our development in phases in an effort to deliver finished lots at a pace that meets market demand, consistent with our focus on capital efficiency and returns. We will stay disciplined, flexible and opportunistic as we consolidate market share in FY23."

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